Gen Z DITCHES College For Blue Collar Work
Summary
TLDRThe transcript discusses the shift in Gen Z's career choices, favoring trade jobs over traditional college paths. It highlights the rising enrollment in vocational education and the increasing demand for skilled trades, with higher starting salaries compared to white-collar jobs. The conversation emphasizes the practicality and financial benefits of this trend, as well as the cultural change in perceptions of blue-collar work, suggesting a positive impact on the economy and individual prosperity.
Takeaways
- 🎯 Gen Z is increasingly choosing trade-focused educations over traditional college degrees, leading to a significant rise in enrollment in vocational community colleges.
- 💡 The shift away from college education is driven by the belief that the wage premium for a college degree is no longer worth the cost and debt associated with it.
- 📉 There has been a notable decline in the average age of workers in trades such as electricians, HVAC technicians, and carpenters, indicating a younger generation entering these fields.
- 🔧 The demand for skilled trades is high due to retiring older workers and a lack of new talent, leading to higher starting salaries for trades compared to traditional white-collar jobs.
- 💰 The median pay for new construction hires rose significantly, outpacing the increase in salaries for new hires in professional services.
- 🏠 Skilled trade workers have the flexibility to live anywhere, with their wages often going further in smaller towns compared to major metropolitan areas.
- 🌟 The cultural perception of college-educated white-collar work versus blue-collar skilled trade work is changing, with the latter gaining more respect and recognition.
- 🎓 The high cost of college education and the resulting student debt are seen as barriers to prosperity and family formation, leading to a reevaluation of the value of a college degree.
- 🚀 There is a call for colleges to compete on the basis of job placement and affordability, potentially leading to policy changes and a shake-up in higher education.
- 🌐 The rise in alternative career paths and the decreasing stigma around skilled trades may impact college affordability and enrollment, as more students seek viable and financially sensible options.
Q & A
What is the term used in the script to describe the shift of Gen Z towards vocational careers?
-The term used is 'tool belt generation'.
According to the Wall Street Journal quote, which fields are experiencing an increase in young workers?
-Plumbing, electrical jobs, and other trades are seeing more young workers.
How has the enrollment in vocational-focused community colleges changed from the 2021 baseline?
-Enrollment in vocational-focused community colleges has increased by about 15% from the 2021 baseline.
What trend is observed in the average age of select trades professionals since 2020?
-There has been a precipitous drop in the average age of trades professionals such as electricians, heating and air conditioning workers, and carpenters, except for welding.
What are two reasons young people are choosing trades over college according to the script?
-They believe the wage premium for college is no longer worth it, and they see jobs like plumbing, welding, and electrician work as essential skills that can't be replaced by AI.
How has the median pay for new construction hires changed in the last year mentioned in the script?
-The median pay for new construction hires rose 5.1% to $48,000.
What is the comparison in starting salaries between trades and professional services jobs for new hires?
-New hires in trades start at a higher salary compared to new hires in professional services, which earned an annual $39,000.
What is the advantage of working in trades in terms of location flexibility?
-Workers in trades have the flexibility to live wherever they want, not necessarily having to reside in a city or major metropolitan area.
What impact could the shift towards trades have on higher education?
-The shift could force colleges to compete by marketing themselves more effectively, potentially leading to changes in policies, lower admission rates, or increased focus on job placement.
What cultural change is being discussed in relation to the perception of college-educated white collar work versus blue collar skilled trade work?
-There's a growing recognition and respect for blue collar skilled trade work, with a reduction in the stigma that has traditionally been associated with it, leading to a more balanced view of both career paths.
What is the concern raised about the cost of college education and its impact on society?
-The concern is that the high cost of college education, coupled with the inability to discharge student loans through bankruptcy, is leading to significant debt burdens that affect family formation, entrepreneurship, and overall life choices.
Outlines
🎓 Shift in Gen Z Career Choices
This paragraph discusses the notable shift in career preferences among Generation Z, highlighting their increasing interest in trade jobs over traditional college education. It cites a Wall Street Journal quote about Gen Z becoming the 'tool belt generation' due to the rising appeal of vocational education and the associated higher wages. The paragraph emphasizes the data showing a 15% increase in enrollment in vocational-focused community colleges since 2021, contrasting with minimal growth in other educational sectors. It also touches on the decreasing average age of workers in trades, suggesting a positive outlook for young people seeking stable, well-paid jobs that are less likely to be replaced by automation.
🏡 Geographic Flexibility and Earning Potential in Trades
The second paragraph explores the geographic flexibility and earning potential associated with trade jobs. It argues that the ability to live anywhere and earn a substantial income, such as $100K per year, is a significant advantage of trade careers, especially when compared to the high cost of living in metropolitan areas. The summary also points out that certain trades, like nursing and electrical work, are in demand across various locations, providing job security and the option to move or travel for higher wages. The paragraph suggests that this flexibility and the potential for higher starting salaries in trades could lead to a cultural shift in the perception of college education and a reevaluation of its worth compared to vocational training.
💰 Economic Implications of College Debt and Alternatives
This paragraph delves into the economic implications of college debt and the potential benefits of alternative educational paths. It criticizes the high cost of college education and the resulting debt, which can hinder family creation and entrepreneurship. The speaker advocates for debt forgiveness and free public college education, particularly for those pursuing careers in STEM fields where a college degree is most valuable. The paragraph also discusses the potential impact on college affordability and the need for higher education institutions to adapt to changing attitudes and demands. It expresses hope that the rise in vocational education will lead to a more affordable and accessible college system, ultimately benefiting those who choose to pursue higher education.
Mindmap
Keywords
💡Gen Z
💡Millennial
💡Trades
💡Vocational Education
💡College Track
💡Wage Premium
💡Productivity Gains
💡Debt
💡Job Security
💡Cost of Living
💡Cultural Views
Highlights
Gen Z is becoming more sensible than the millennial generation in terms of employment choices.
There is a shift among young workers towards trades due to disenchantment with the college track.
Enrollment growth in vocational community college has increased by 15% from 2021, a significant rise in modern American history.
The average age of select trades has seen a precipitous drop since 2020, indicating a younger workforce entering these fields.
The wage premium for college is no longer considered worth it by many.
Young people are recognizing the value of jobs that cannot be replaced by AI, such as plumbing, welding, and auto mechanics.
The median pay for new construction hires rose 5.1% to $48,000, compared to a 2.7% increase for new hires in professional services.
The demand for skilled trades is high due to an aging workforce and a lack of young talent.
Trade jobs offer more flexibility in terms of where one can live, as opposed to being tied to a city.
The cultural view of college-educated white collar work versus blue collar skilled trade work is changing.
The stigma around trade jobs is diminishing, leading to more people considering them as a viable and positive choice.
The rise in college tuition fees and student debt is a significant issue, with many questioning the value of a college education.
The cost of living, especially housing, can be significantly lower in smaller towns, making trade jobs more financially appealing.
The shift towards trades could lead to colleges having to compete and offer better value for their tuition fees.
The current student loan system is seen as predatory, with loans being difficult to discharge through bankruptcy.
The decline in college enrollment may lead to more affordable public college education.
The discussion highlights the importance of diverse career pathways and the potential for a more balanced approach to higher education and vocational training.
Transcripts
at the same time we wanted to put some
good news actually in the show there's
been an astounding development amongst
gen Z even though a lot of people are
very concerned about their political
views and maybe their online phone usage
it seems that they're a lot more
sensible than my millennial generation
whenever it comes to employment let's go
and put this up there on the screen
quote from the Wall Street Journal how
gen Z is becoming the tool belt
generation more young workers are going
into trades at disenchantment with the
college track continues Rising pay and
new technologies shine up plumbing and
electrical jobs let's actually go to the
next part because this is a really
interesting chart that people can see it
shows that enrollment growth in
four-year college degree in in
vocational Community focused Community
College has gone up by some
15% from the 2021 Baseline whereas there
has been maybe a single-digit increase
if you look at other four-year uh
institutions and even Community College
that are not vocational Focus what that
tells us is that the spike the overall
15 or so% spike is the one of the most
extraordinary that we've seen in modern
American history for younger people who
are explicitly choosing to go into
trades based educations with set wages
that are much higher than they ever were
before than at any time previously when
they were choosing for more
service-based economies we can go to the
next one too because this is really
really fascinating is you can watch
there how the precipitous decline has
happened in the average age of Select
trades electrician heating air
conditioning Carpenter and I think every
trade except for welding has seen a
precipitous drop just since 2020 and
especially since
2017 in the am in the median age of the
people who are engaged in the trades
Crystal and the main thing that comes
through in this piece over and over
again on top of the data is that people
believe a couple of things number one is
that the wage premium for college is no
longer worth it that is absolutely 100%
true but two and even more interesting
to me young people are sitting there 18
years old they're looking at AI they're
looking at the productivity gains that
are being rolled up into the stock price
of these big tech companies and they're
saying yeah you know what the one thing
you can't AI is Plumbing welding having
a job as an auto mechanic having a job
as an EV technician having a job as an
electrician they're always going to need
that if anything that's what's going to
build the backbone the future economy
and they're choosing to make that choice
and I think they're setting themselves
up for a much easier and previously
trotten path to middle class and frankly
to Prosperity they're not taking out a
lot of debt they're setting themselves
up for very very well they're going to
start earning a lot more money than they
would have previously it's a very very
sensible direction for a lot of people
who are out there yeah it's incredibly
rational college is insanely expensive
and debt loads are skyrocketing with no
real relief in sight so you've got that
on one side of The Ledger um you have a
bunch of young people who may have
watched their parents um you know white
collar professions and seen how their
life is consists of staring at a
computer screen all day and thought you
know what this isn't really what I want
for myself and so I think there's a
reaction in the other direction there um
there's also tremendous demand in some
of these uh trades where there had been
previously a crisis of a lot of uh older
Journeymen who were you know retiring
and there wasn't a clear pipeline of new
Young talent to replace them well that
is now r versing and uh you pointed to
the pay so in this piece they point out
that the median pay for new construction
hires actually Rose 5.1% to $48,000
roughly last year by contrast new hires
in Professional Services so like your
sort of traditional white color job out
of college earned an annual
39,000 um and it experienced a 2.7% so a
lower increase from 2022 this is
according to ADP so at least in terms of
where you start out you make start at a
higher salary if you go into one of
these trades versus if you go and spend
all the money on a four-year college
degree now still over the lifetime of
these different careers Blue Collar
versus white collar right now the median
for White Collar work uh once you're
into your career continues to outpace
Blue Collar work but you know does that
remain the case is it worth it given the
extraordinary expense that you have to
incur on the front end the fact that
there's been a shift away from this idea
that everyone has to go to college and
if you're going to succeed in life you
have to go to college and that's the
only path forward I think it's a really
positive thing because you know there's
also a lot of uh people who find
tremendous fulfillment in the trades and
like being able to build things and work
with their hands and don't want to just
sit in an office all day so I think this
is a really incredibly positive and
hopeful development honestly the other
very important thing with this is we
talking about the well part of the
problem that we talk about with wages is
that we look at the average so yeah it's
if you're in White Collar work if you're
college educated you are probably on
average your lifetime earnings are going
to be higher but where do you live what
are you netting out one of the nice
things about trades is you can live
wherever you want you don't necessarily
have to live in a city if you don't want
to and 100K a year in a smaller town
where they need HVAC just as much as
HVAC as we live here in Washington DC in
some cases your uh cost of living can be
especially on housing can be like 1 the
amount in a major metropolitan area you
have a lot more flexibility I see this
all the time with people who are skilled
uh especially like nurses uh nurses they
can just decide to move whenever they
want and they're in demand literally
everywhere from small town Big Town if
they want to make more money they can
travel to uh it's an incredible uh
career field I see this too with people
who are electricians and plumbers it's
if when you have such a valuable skill
that you can effectively transplant
anywhere in the entire United States you
have more job security and you also make
it so you don't necessarily have to live
in a major metropolitan area if you
don't want to just gives you a ton of
optionality and the other thing and this
is what I really hope for is that the
colleges finally have to compete because
if their revenues start to go down
they're going to have to start marketing
themselves as to why they are actually
worth it and not just so Mom and Dad can
feel good that you went to a four-year
college degree they actually got to be
like no no no if you come here we're
going to get you a job so actually
invest some of that money that they're
basically stealing from people and from
the government into actually getting you
a job on the other side or maybe they'll
lower their admissions rates or maybe
you know we can change up our policy
that's probably the most fundamental
important thing is the shake up to
higher education yeah I I think that
that is correct I also think there's
something really important happening in
terms of um cultural views of college
educated White Collar work versus Blue
Collar skilled trade work which this was
really you know for a lot of years
especially in sort of like the peak of
the neoliberal era College was viewed as
the Pinnacle M And Trades were
considered sort of like the fallback
right the Lesser Choice it was like the
stepchild you know they talk about in
this article they talk about a high
school where it used to be you know the
Trade building was sort of pushed off to
the side and people sneered at it and
looked down their nose at it and now
it's got uh nice new equipment it's at
the front of the school It's featured
people actively seek this out you know
it's doesn't have that same sort of like
stigma around it that unfortunately it
has for for far too long so I think
that's a really positive direction as
well and also could lead to you know
Blue Collar people average working
people having more say and more
political power um in terms of our
politics as well so I think that's
really important I also think there's
something sogger to the fact that just
like the the Mystique and the fantasy of
college is really worn off yes how many
people go and you know they do the thing
they're supposed to do and they get
their four-year degree and then end up
you know Barista Starbucks or working in
in a field or an industry where they
didn't even need a four-year college
degree or they're certainly not working
in me I mean perhaps a majority of
people end up not even working in the
thing that they studied in college so
it's like what are we really doing here
are we just here for some sort of a life
experience or is this actually leading
us to where we want to be in terms of
our life and career trajectories so the
fact that stigma is being removed the
fact that wages are going up the fact
that this is being seen as like a viable
positive affirmative Choice by more
people in
I genuinely think this is such a
positive thing absolutely can't let's
spend some more time on this 39% of 18
to 24 year olds are enrolled in a
postsecondary program that's way too
high it's way too high the vast majority
of those people are enrolled in quote
unquote knowledge-based service programs
and previously were not engaged in
vocational programs the previous percent
of people who went to college I think
the right amount was roughly around 19%
it should be a luxury good it should be
something where yes you have to take out
a tremendous amount of debt or you come
from a family that can afford it and
then you can use that wage premium in
the service based economy but the vast
majority of people don't need to attend
it's not a good trade So 20% or so of
people who attended fell exactly into
that bucket now I'm not saying it's fair
I don't think it is fair but what I do
think is that watching people go into
hundreds of thousands of dollars in debt
the average college what what is the
average student loan that's out there
something like 25 something $30,000
especially on these variable interest
rates or some of these private loan
programs is is Usery I mean it's it's
insane and thanks to our current
president by the way you can't even uh
discharge it through bankruptcy so it
makes it that it's just incredible news
around people's neck in this country
right now we have a huge problem where
the average woman wants to have 2.2 kids
and is having 1.8 the number one reason
that families site as to why is money
and debt specifically a huge portion of
this is student uh debt the other issue
is I just was talking about if you want
to have a job and you want to work with
your college degree the likelihood is
like us you need to move to a major
metropolitan area which has a very high
cost of living and is where the major
concentration of these things are and so
over and over you're getting on the
wheel where very few people are actually
winning the people who won are the
Boomers in the past and like I said
traditionally some 20% or so of the
population which does really justify
that college premium highly concentrated
in stem in particular for what is
actually worth it but we never thought
about about it as a trade we just
thought of it as an intrinsic good and
that's really how we ended up here I
mean I'm just in favor of more choices
right I I think we should have Deb
forgiveness I think we should have free
public college so people who want to
pursue that path who want to go into
stem want to go into a white collar
career for them that's the thing and it
makes sense for them that they have that
opportunity and that's fantastic I think
it should be you know like I said I
think public college should be free it
should certainly be way more affordable
than it is right now and we take it for
granted because of the era that we grew
up in that it should be this incredible
burdensome load when not that long ago
there University of California's system
was free and many other schools were
extremely affordable where you could
work and actually afford to pay your way
through school like the idea of being
able to do that is preposterous now so
people even at State schools leave with
tens of thousands of dollars in debt to
start their life that has Ripple effects
throughout their entire life as you're
pointing out not only with family
creation also really stifles
entrepreneurship because you know you've
got this thing you got to pay every
month and that's hanging over you and so
you just feel like all right I got to
get to work I got to get whatever is the
highest paying job that I possibly can
forget about potential entrepreneurship
forget about whatever the dream job
might be that potentially is lower
paying I just got to get on that grind
and try to pay this sucker off so it
really does constrain from the jump your
life choices which is a disaster so the
fact that you have you know other
Pathways that are being seen as
attractive that people are pursuing that
you know have that the the stigma around
them is is going away and that lead can
lead you know very clearly and like on a
direct path to this sort of you know
stable middle class life it's it's a
really it's a really good thing really
encouraging and I think will potentially
have some impact on College
affordability as well because you are
already seeing actually enrollment
declines in fouryear institutions as as
things are shifting so I do think it's a
a good direction yeah and I hope that
these private colleges in particular I
hope they get crushed um from the wave
of this because it is Criminal how much
they've been jacking so true some like
freaking mediocre school and you're
paying these insane amounts it's crazy
did you see that in the Northeast some
of these premium like liberal arts
colleges are now charging some $90,000 a
year look Yale maybe and maybe I want to
say again big maybe the rest of them
Sarah Lawrence or something like that
you are an idiot if you're paying
$90,000 for something like that ain't
worth it it ain't worth it hey guys if
you like that video go to breakingpoints
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