Terry Schilling, president of the American Principles Project research foundation, urged “Generation Z” to reconsider the traditional university path and instead pursue skilled trades or entrepreneurship, especially in today’s challenging job market.
Schilling explained: “We need to go back to square one, and if we can avoid having an entire generation stuck with $80,000 to $150,000 in student loans while still helping them get good jobs, we should absolutely pursue that. I believe skilled trades offer the best option for this.”
Data from the Federal Reserve Bank of New York showed that the labor market “deteriorated significantly” during the first quarter of 2025, with new entrants to the workforce being the hardest hit.
Gen Z Told to Skip College for Trades Amid Debt and Job Struggles
In June, the unemployment rate among all college graduates stood at just 2.7%, while it reached 4.8% among those aged 22 to 27. At the same time, the underemployment rate—referring to the percentage of graduates working in jobs that typically do not require a college degree—was 33.7% for all graduates and 41.3% for recent graduates.
On Tuesday, the Federal Reserve also announced a sharp rise in the number of delinquent student loans following the end of the payment freeze and the resumption of reporting late payments to credit agencies.
Schilling: Skip Costly Degrees, Pursue Trades or Entrepreneurship
Schilling noted that with annual tuition fees ranging between $50,000 and $60,000 depending on the university, the investment may not be worthwhile, “especially if you won’t get a higher-paying job, or if you end up unemployed just like someone who never went to college in the first place.”
He acknowledged that degrees remain essential for certain fields such as medicine and law but argued that for many, college has become an expensive and inefficient form of vocational training that doesn’t always adequately prepare students for employment.
“I think the cost far outweighs the benefits of college,” he continued. “Even employers are now looking to hire people without college degrees who are better suited for the roles.” He added that viable career alternatives include skilled trades and entrepreneurship, noting that there is a significant shortage in all trades, from electrical work to plumbing and carpentry.
According to Forbes, more than one million skilled trade jobs remain unfilled in the United States, driven by an aging and retiring workforce as well as societal bias toward college degrees.