A recent report from Resume Builder reveals that 42% of Generation Z adults are currently involved in or pursuing blue-collar and skilled trade jobs. Interestingly, 37% of these individuals have obtained a bachelor’s degree. The survey conducted among over 1,400 Gen Z adults highlights significant gender differences in career choices irrespective of education level. Among college graduates, 46% of men work in or pursue skilled trades compared to only 27% of women.
The reasons behind this shift include better long-term prospects, difficulty finding jobs aligned with their degrees, insufficient earnings, and unexpected career trajectories. Additionally, non-degree holders find financial independence through blue-collar jobs without the burden of student loans. Meanwhile, evolving labor market trends indicate a potential "white-collar recession" and an increasing willingness among workers to compromise on pay and location for job security and flexibility.
Among the key factors influencing Gen Z's choice of blue-collar careers is the concern about artificial intelligence replacing traditional white-collar roles. Many find that hands-on work in trades is harder to automate, making it a more stable career option. Furthermore, graduates often discover that their degrees do not necessarily lead to careers in their field, prompting them to seek alternative paths.
This trend is supported by various motivations cited by Gen Z workers. For instance, 30% opted for blue-collar work due to better long-term prospects, while 19% couldn't find jobs matching their qualifications. Another 16% found their degrees didn't lead to expected careers or weren't earning enough. These statistics reflect a growing realization among young professionals that practical, high-demand jobs may offer more stability and satisfaction than traditional academic routes. Gender disparities also play a role, with men being significantly more likely to choose blue-collar careers regardless of education levels.
Beyond career concerns, economic incentives drive many Gen Z members towards blue-collar jobs. Those without degrees particularly benefit from the financial independence offered by these roles. They can start earning sooner (60%), avoid student loan debt (40%), achieve better long-term security (36%), earn more without needing a degree (31%), and feel safer from AI replacement (28%).
As the U.S. job market experiences shifts, segments like desk-based roles see declining postings year over year, hinting at a possible "white-collar recession." In response, workers across all demographics show readiness to make compromises in terms of salary and location to ensure employability and flexibility. According to Randstad, job security, time flexibility, and well-being rank higher than remote work or higher salaries for many employees. This mindset shift underscores a broader adaptation to changing labor dynamics where stability trumps other considerations, reflecting anxieties around job insecurity and limited opportunities highlighted in BambooHR's findings.