The Changing Landscape of Education and Employment for Gen Z
Gen Z is increasingly questioning the value of their college degrees, and recent research suggests there may be some validity to this skepticism when it comes to job hunting. A notable trend shows that the unemployment rate among males aged 22 to 27 is roughly similar, regardless of whether they hold a degree. This shift is occurring as employers are becoming less reliant on formal educational credentials and as young men are opting for skilled trades instead of traditional corporate careers.
The challenges faced by Gen Z in entering the job market are significant, but young male college graduates appear to be struggling the most. According to the most recent data from the Federal Reserve, the unemployment rate among recent college graduates has risen to about 5.5%. While this is still lower than the 6.9% rate for all young workers between 22 and 27 years old, the gap is narrowing. An analysis of U.S. Current Population Survey data by the Financial Times reveals that men with a college degree now have a similar unemployment rate to those who did not pursue higher education.
This change signals a dramatic shift from past trends. In 2010, non-college-educated men had unemployment rates over 15%, while college graduates experienced rates closer to 7%. The promise of a job market boost once associated with a college degree is fading, and employers are placing less emphasis on academic credentials when hiring for entry-level positions.
Diverging Employment Rates Between Men and Women
While both men and women face challenges in the job market, their experiences differ significantly. According to the Financial Times analysis, 7% of college-educated American men are unemployed, compared to around 4% for women. This disparity may be attributed to the growth in fields like healthcare, which are expected to expand much faster than other industries. The U.S. Bureau of Labor Statistics projects that healthcare occupations will create about 1.9 million openings each year over the next decade.
Healthcare is considered a recession-resistant industry because medical care remains in constant demand. Priya Rathod, a career expert at Indeed, previously highlighted this aspect, noting that healthcare is always needed, regardless of economic conditions. Additionally, gender differences in job flexibility play a role in employment outcomes. Women tend to be more open to accepting jobs that do not perfectly align with their career goals, including part-time or overqualified positions. In contrast, men often wait for roles that match their ideal career path or offer perceived adequate compensation and status.
The Rise of Skilled Trades Among Gen Z
Many Gen Zers have come to understand the difficulties of today’s job market firsthand. Approximately 11% of young people are classified as NEET—meaning they are not employed, in education, or participating in training. While there are various reasons for this disengagement, college-educated individuals often struggle with feelings of hopelessness after prolonged job searches. Young men, in particular, are more likely to fall into this category.
However, some young people have recognized the changing dynamics and are shifting their paths. The overall number of young college students has decreased by about 1.2 million between 2011 and 2022, according to Pew Research Center analysis. This decline is marked by a gender divide, with approximately 1 million fewer men and about 200,000 fewer women enrolled in college.
A growing interest in skilled trade careers, which are typically male-dominated, may be contributing to this shift. Enrollment at two-year vocational public schools has increased by about 20% since 2020, adding over 850,000 students, according to the National Student Clearinghouse Research Center.
This trend is gaining attention from influential figures. Daniel Lubetzky, founder of KIND bars and a new judge on Shark Tank, has emphasized the potential of vocational careers, such as carpentry or mechanics, as high-paying and rewarding opportunities. He has stated that these fields offer substantial prospects and that college is not necessarily a requirement for success.
“Vocational training and learning how to be a carpenter or a mechanic or any of those jobs is a huge field with huge opportunities that pays really, really well,” Lubetzky said earlier this month. “For those people that have great ideas or great opportunities and don’t want to go to college, I don’t think college is an end-all, be-all or required thing.”
