Gen Z Is Pulling Back From Blue-Collar Work

While Gen Z has surpassed other generations in their preference for blue-collar work, a new report indicates they might be pulling back from the trades.

In January, the blue-collar share of workers aged 20 to 24 was 18.6 percent, according to a new report from ADP Research Institute. That was 2.3 percentage points higher than the same age group in January 2019 and 2.5 percentage points more than workers aged 25 to 39.

But while the blue-collar share of young workers has grown since 2020, the report discovered a plateau of workers in these types of jobs in 2022.

Gen Z, which includes those born from 1997 to 2012, has been increasingly described as the “toolbelt generation,” with college enrollment falling fast from 2019 to 2024.

“The pandemic made many blue-collar positions harder to fill, and, as a result, employers were forced to raise wages significantly in order to attract talent,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “For the first time in decades, many factories were paying hourly wages that met or exceeded their white-collar counterparts, and workers from Gen Z took advantage of this trend.”

The number of bachelor’s degree students fell by 3.6 percent, and associate degree enrollment dropped by 15.9 percent.

While the COVID-19 pandemic may have played a role in Gen Z’s skepticism about higher education, surging college costs and the student debt crisis may also have convinced many to find careers beyond the traditional college pathway.

“It seems clear to me Gen Z initially embraced blue-collar jobs as a pragmatic response to rising education costs and stagnant white-collar wages, especially during the pandemic,” HR consultant Bryan Driscoll told Newsweek. “The surge made sense. Skilled trades offered quicker entry, lower debt and immediate income, often higher than white-collar roles.”

This is reflected in the statistics, as well. Enrollment in vocational schools increased by 4.6 percent from 2019 to 2024.

But the plateau since 2022 is telling, Driscoll said. As AI crept into several sectors, job security is increasingly being questioned.

“Gen Z demands purpose, stability and respect for their labor,” Driscoll said. “The job market’s failure to meet these expectations will likely push Gen Z toward roles that offer long-term growth and security, regardless of the collar color.”

Gen Z has so far had a unique experience entering the workforce at about the time or shortly after the pandemic.

In a Talker Research survey of 1,000 Americans, a substantially higher number of Gen Z workers indicated they could quit their jobs. Roughly 11 percent of Gen Z respondents agreed with the statement, “I’ve considered quitting my job because I feel overwhelmed by the things I need to learn.” That was compared to just 8 percent of millennials, 9 percent of Gen X, and 1 percent of baby boomers.

These feelings of being overwhelmed and dissatisfied could give rise to the stereotype among other generations that Gen Z is more difficult to work with or more likely to job hop.

Another recent report from Bankrate found that 39 percent of Gen Z employees planned to quit their jobs in the next year, compared to just 25 percent of all workers.

“With the pandemic ending and some of that wage growth starting to stall, some of that same workforce is now looking to switch back to white-collar fare for both an increased salary and a lighter workload,” Beene said.

Driscoll said that overall, younger workers are demanding higher wages along with equitable treatment and career progression. This is “creating a divide between industries that adapt and those that fall behind,” Driscoll said.

“Companies that recognize this shift early will attract and retain top talent, while others will face high turnover and recruitment challenges,” he said.