The Blubber

As Gen Z continues to come of age, many are choosing to skip traditional college pathways in favor of alternatives—primarily due to the rising cost of a bachelor's degree, they told CNBC Make It.

The annual price tag for attending a four-year, in-state public college jumped roughly 30% between 2011 and 2023, while costs at private nonprofit universities rose by 42%, based on Make It's analysis of data from the Education Data Initiative.

“There are about 2 million fewer students enrolled in traditional four-year colleges today than in 2011,” says Nich Tremper, a senior economist at payroll and benefits firm Gusto.

Instead, a growing number of young people are heading into skilled trades—fields like construction, plumbing, electrical work, and automotive repair. Although Gen Z accounted for 18% of the overall workforce in early 2024, 18- to 25-year-olds made up nearly 25% of new hires in the skilled trades, according to Gusto data.

So what’s drawing Gen Z to blue-collar jobs—and how might Trump’s new tariffs affect them?

For one, job security has remained more stable in the trades than in many white-collar professions, says Tremper, citing Bureau of Labor Statistics data on termination rates, which measure layoffs and discharges.

“Industries like construction, manufacturing, and trade, transportation, and utilities have shown lower termination rates than sectors like professional and business services, where many white-collar roles are concentrated,” he explains.

And as Baby Boomers gradually retire, Gen Z may find even more doors opening. “As these folks phase out of the workforce,” Tremper says, “Gen Z workers will have the chance to step into those roles, launch their own businesses, and contribute to a more dynamic economy—potentially creating more financial opportunities for themselves in the long run.”