Experts predict a massive skills gap will leave an estimated 3 million skilled trades jobs unfilled by 2028 and cost businesses $8.5 trillion by 2030 – an issue only exacerbated by the retirement of America’s largest generation.
Baby Boomers (born between 1946 and 1964) make up 25% of the U.S. workforce and nearly all of the 85 million workers in this generation will retire within the next decade. This means that a significant population of highly skilled workers will soon bow out of the workplace leaving America’s skilled trades — from plumbing to welding to construction — with a critical worker shortage.
Gen Z (those born between 1997 and 2012) is bucking the college trend, opting for trades over traditional university degrees. This “Toolbelt Generation” is bypassing higher education in favor of hands-on careers. With competitive pay and cutting-edge technologies transforming industries like welding and machine tooling, trade professions are shedding their outdated reputation as dirty, low-status jobs, and gaining newfound respect and interest among the newest generation in the workforce.
Breaking the College Pipeline
For decades, young people were told that the surest path to success was a college degree. But the Toolbelt Generation is challenging that notion, seeking alternatives that align more with their values and the current economic landscape.
According to a recent study by the National Center for Education Statistics, college enrollment rates have been steadily declining since 2010. Many Gen Z-ers are rethinking the value of a degree, especially given the soaring costs of higher education and the crushing student loan debt that often follows.
In contrast, skilled trades offer a much more direct path to financial independence. Training programs for trades like plumbing, electrical work and welding often take just a few years or even months, with lower costs and a higher return on investment. This is appealing to the Toolbelt Generation, a group that values practical, hands-on experience and is increasingly skeptical of the traditional education model. By stepping into the trades, Gen Z is not only securing stable, high-paying jobs but also helping to address a growing labor shortage.
Why the Toolbelt Generation Is Choosing the Trades
Compared to older generations, Gen Z’s preferences in career selection are generally the same, but with a few key differences surrounding stability, safety, and purpose that help explain the draw of the trades:
#1 Financial Stability Without Debt
One of the most significant factors driving the Toolbelt Generation toward the trades is the financial stability it offers without the burden of student loans. According to the Federal Reserve, the average student loan borrower in the U.S. owes about $37,000. For many, the prospect of years spent paying off debt is unappealing, especially when skilled trades offer the potential to earn a competitive salary without the upfront costs of a college education.
Now that pay for new hires in construction outpaces pay for new hires in professional services like accounting, Gen Z sees vocational training as a “straight path to a six-figure job.” With apprenticeship programs, the Toolbelt Generation can earn while they learn, entering the workforce debt-free and with valuable skills under their belt.
#2 Desire for Meaningful Work
The Toolbelt Generation is seeking meaningful, purpose-driven work. The traditional 9-to-5 office job holds little appeal for Gen Z, which values flexibility, creativity and the ability to see the tangible results for their efforts. The trades provide a hands-on opportunity to solve real-world problems and contribute to essential infrastructure and services.
Whether it’s building homes, maintaining electrical grids, or ensuring clean water access, tradespeople play a crucial role in society. The Toolbelt Generation is drawn to this kind of work, which offers both a sense of accomplishment and a clear impact on the community. The satisfaction of seeing a completed project — whether it’s a renovated kitchen or a repaired HVAC system — resonates deeply with Gen Z.
#3 Job Security
As baby boomers retire, the demand for skilled tradespeople is skyrocketing. Electricians, plumbers, welders, and carpenters are all in high demand, and that demand is only expected to grow.
For the Toolbelt Generation, this means job security in an economy that has become increasingly uncertain. While some industries face automation and outsourcing, the trades rely on human expertise and craftsmanship that cannot be easily replaced by AI or overseas workers. This job security is a major draw for young people looking for stable and long-lasting careers.
#4 Affordable Apprenticeships and Training Programs
The crushing debt of college tuition in recent years has become a barrier in and of itself. Between 2000 and 2021, average tuition and fees at four-year universities jumped by 65%. According to the National Student Clearinghouse, “40 million Americans have enrolled in college but haven’t ultimately graduated—an all-time high. As a result, college has left many students in debt, without a degree to help them get out of it.”
Unsurprisingly, the Toolbelt Generation is opting to enter the trades is through apprenticeships which allow individuals to earn while they learn, combining classroom instruction with hands-on experience.
Programs like those offered by unions, trade schools, and even high schools are making it easier than ever for young people to enter the trades. As a result, apprenticeship programs in the construction industry have seen a significant 28% increase in enrollment over the last 5 years.
Apprenticeships not only provide technical training but also offer mentorship from experienced professionals. This guidance helps new workers navigate the industry, avoid common mistakes and develop the soft skills necessary to succeed in a competitive environment – a model is particularly attractive to a generation that values immediate rewards and real-world application.
Paving the Way Forward
By choosing hands-on careers over traditional college degrees, members of the Toolbelt Generation are not only securing their financial futures but also addressing a critical labor shortage in industries that are vital to the nation’s infrastructure, including construction. With competitive pay, job security, and opportunities for meaningful work, the skilled trades are attracting a new wave of young talent eager to make an impact.
Gen Z’s willingness to challenge the status quo is helping to reshape how society views trade professions and proving that these careers offer more than just stability – they offer purpose.
Stay tuned for our next blog post where we explore how employers can effectively attract and retain this rising generation’s talent to boost productivity and profitability.
Want to harness the power of the Toolbelt Generation to grow your business? Schedule a call to speak with a Tyfoom training consultant today!