Youth leader advocates for vocational training over higher education in challenging employment landscape
==================================================================================================
The United States is currently grappling with a significant skilled labor shortage in industries such as electrical work, plumbing, and carpentry, with over one million trade jobs remaining unfilled[1][2]. This shortage is primarily attributed to an aging and retiring workforce, combined with a societal bias favoring college degrees over trade skills[2][4].
In contrast, the unemployment rate for all college graduates is relatively low, hovering around 2.7%, but the situation is less rosy for recent college graduates aged 22 to 27, who face a 4.8% unemployment rate[2]. Additionally, underemployment—working in jobs not requiring a degree—is common among college graduates, with about 33.7% underemployed overall and 41.3% among recent graduates[2].
The American Principles Project, an organisation advocating for families, is urging Gen Zers to consider skilled trades or entrepreneurship instead of the traditional college route[3]. Terry Schilling, the organisation's president, believes that the benefits of college have not kept pace with its cost, and suggests that avoiding student loans could be beneficial for students if they can still secure good jobs and pursue non-traditional routes[4].
The high cost of tuition, which has risen to $50,000 or $60,000 per year, is another factor driving the shift towards trades[5]. Employers are increasingly looking at hiring people without college degrees who are better suited for the jobs, and the trades offer the best option for avoiding student debt and finding good jobs[2][4].
The labour market context includes steady wage growth in construction, with a 4.0% labor cost increase in 2025, indicating pressure to attract workers in trades[1]. Meanwhile, the overall unemployment rate stands around 4.2% in mid-2025, reflecting a still relatively tight labour market but with signs of softness and unevenness across sectors[3][5].
The New York Fed recently reported a significant rise in the number of delinquent student loans after the end of a moratorium on student loan repayment, adding to the financial strain faced by recent college graduates[6]. In light of these developments, the appeal of skilled trades and entrepreneurship as viable alternatives to the college route is growing.
References:
- Construction labor costs up 4.0% in 2025
- Skilled labor shortage in the U.S.
- American Principles Project urges Gen Zers to consider trades
- Terry Schilling encourages Gen Zers to consider trades
- The cost of college tuition
- Delinquent student loans after moratorium
- As student loan delinquencies rise after the end of a moratorium, the appeal of skilled trades and entrepreneurship as alternatives to college is increasing.
- The American Principles Project is urging Gen Zers to consider trade skills or entrepreneurship as an alternative to college, due to concerns about the cost of student loans and the possibility of ending up underemployed or jobless.
- In this tight labor market, employers are often looking for workers with trade skills, as they may be better suited for open positions, which could offer a viable avenue for credit and loan-free investment in a career.
- Given the skilled labor shortage in sectors like electrical work, plumbing, and carpentry, and the relatively high unemployment rate among recent college graduates, developing necessary trade skills could be an effective strategy for job-search success and career development.
