OK, so let's get into this. For decades, a college
degree was seen as, well, the golden ticket,
that laminated promise of economic security,
a clear path. The standard playbook for success,
you could say. Exactly. But what happens when
that promise starts to fray, especially for Gen
Z? Welcome to another deep dive from the road
to financial empowerment by empowering your finance.
Today, we're really digging into Gen Z grads,
the shifting employment landscape. And we've
pulled together some really fascinating sources
for you. We've got recent surveys from places
like Resume Genius, the Financial Times, analyses
from Pew Research Center, even a doctoral study
from Walden University. So a good mix to really
understand what's happening. Yeah. And our mission
today is basically to cut through the noise,
extract the key insights from all this material.
We want to look at why that traditional path
is being questioned so much now. And there are
some surprising gender dynamics. we need to talk
about too. Oh, interesting. Plus, what alternatives
are popping up? Things that might actually redefine
success for this generation. Right. Get ready
for maybe some aha moments, because what we're
looking at here, it isn't just a passing trend.
It feels more like a fundamental recalibration
of value in this rapidly changing economy. It
affects everyone. So let's set the scene a bit.
Historically, that four -year college degree,
It was the undisputed ticket to economic security,
wasn't it? Absolutely. The American dream's most
prized possession, as some might say. Yeah, he
guaranteed you that seat at the professional
table, or so he thought. And look, for a long
time, that largely held true. But what our sources
are showing now is that for today's Gen Z, particularly
young men, that dream is, well, it's unraveling
at the seams. That's a direct quote. Unraveling
at the seams. Yeah. Consider this is pretty jarring.
A recent Financial Times analysis using pretty
current data, U .S. Current Population Survey
from July 2025, it shows young male college graduates
aged 22 to 27 now have almost the same unemployment
rate as guys their age without degrees. The same
rate, so the advantage is gone. Pretty much leveled
out in that specific group. Now, for context,
the Fed puts the overall unemployment rate for
recent college grads at 5 .5 % versus 6 .9 %
for all young workers in that age range. So there's
still a slight edge overall, but for young men
specifically. That gap has closed dramatically.
And how does that compare to, say, a decade ago?
Oh, it's a stark difference. Go back to 2010.
Young men without college degrees, they faced
unemployment over 15%. 15 %? Yeah. While their
college -educated peers were down around 7%.
percent. So that significant educational advantage,
it's clearly eroded quite dramatically. Okay.
So what's causing this? Why this erosion, this
leveling? Well, there seem to be a few key factors.
One big one highlighted in a Harvard Business
Review piece from 2023 is employers are quietly
dropping degree requirements. Really, for what
kind of jobs? Especially for a lot of entry -level
roles. I think tech, logistics, customer service,
sectors where maybe specific skills or just being
able to learn quickly matters more than the credential
itself. Okay, that makes sense. Skills over sheepskin.
Kind of, and then there's just the sheer number
of graduates. The proliferation, as the sources
call it. It's diluted the exclusivity. If everyone
has a bachelor's degree, it doesn't make you
stand out quite as much. Right. It becomes the
baseline, not the differentiator. And we haven't
even mentioned the cost yet, which is just astronomical.
Exactly. That's a huge piece of the puzzle. Our
sources show the average annual cost for a four
-year public college up over 140 % and private
universities up around So you're talking about
potentially crippling debt before you even land
that first job. So putting this all together,
does it mean higher education is like obsolete?
Is college dead? People are asking that. And
the sources are pretty clear. No, it's not obsolete,
not at all. Degrees absolutely still matter and
they're essential for certain fields, medicine,
law, advanced research, you name it. OK. But.
And this is the big but. The myth of the guaranteed
payoff is gone. That's the shift. The guarantee
is gone. Precisely. It's less about the death
of education, more about a really profound recalibration
of value. Young people today, Gen Z especially,
they're laser focused on return on investment,
ROI. Understandably so. Especially post pandemic
with AI shaking things up, inflation. They're
asking very practical questions about what that
expensive degree will actually do for their bank
account. That's a really powerful way to frame
it. A generational recalibration. Not necessarily
a crisis, but a correction. Recognizing that
maybe the path isn't just paved with that parchment
anymore. It's about practical skills, economic
independence. And look at this stat from Resume
Genius. 23 % of full -time Gen Z workers actually
regret going to college. 23%. Yeah. And 19 %
said their degree didn't even help their career.
That's telling. OK, so if we dig a bit deeper
into these trends, what about different groups
within Gen Z? You mentioned gender dynamics earlier.
Right. This is where it gets quite interesting.
The sources point to a pretty notable gender
gap. While college -educated young men are seeing
this rising unemployment matching their non -degree
peers, their female counterparts seem to be faring
better. Faring better how? Lower unemployment.
Exactly. That same Financial Times analysis,
it found only about 4 % of college -educated
women aged 22 to 27 are unemployed. OK, compared
to the 7 % for men you mentioned earlier. Precisely.
A significant gap there. Why is that? What explains
that difference? Well, part of it seems to be
sector -driven. Health care, for instance. It's
a huge employer, tends to employ more women,
and it's one of the fastest growing fields in
the US. The Bureau of Labor Statistics projects,
like 1 .9 million health care job openings annually
over the next decade. Wow. And healthcare, as
seen, is pretty stable, right? Like, recession
resistant. Generally, yes. That's a big factor.
But there might be other things at play, too,
in terms of approach. For approach to the job
search, you mean? Yeah. Some experts in our sources
suggest women might be, on average, more flexible,
maybe more willing to take part -time work, or
temporary roles, or something that's maybe good
enough for now just to get a foot in the door,
gain experience, or maintain financial stability.
OK. Whereas men? Whereas men, again, generalizing
based on the sources, might be more likely to
hold out for that perfect role, the one that
really matches their ideal career vision. Which
could mean longer stretches of unemployment while
they search. Potentially, yes. It's one hypothesis
put forward. Okay, so that Financial Times data
points to better outcomes for college -educated
women in that specific group. Yeah. But you mentioned
another study, the Walden University one. Did
it find something different looking more broadly?
Yes. And this is why it's important to look at
multiple sources. That doctoral study used BLS
data looking at gender, generation, and overall
unemployment rates, not just recent grads. And
interestingly, it found that females, compared
to males across the generations studied, actually
saw a slight increase in unemployment rates,
euro 0 .652 units, to be precise. Oh, so the
opposite trend from looking more broadly. In
that specific study, yes. It suggests that while
college -educated young women might be doing
relatively well right now, possibly due to sector
growth, the broader picture for women across
all education levels might still involve challenges
like occupational segregation, being concentrated
in certain lower paying fields or societal norms
impacting work. So it's complex, different data
sets, different demographics. They paint slightly
different pictures. Exactly. Nuance is key here.
OK. So faced with all this, the cost of college,
the uncertain payoff, maybe tougher job markets.
You mentioned Gen Z men, in particular, are charting
a different course. This rebellion in steel -toed
boots. Yeah, it really seems like it. The numbers
back it up pretty strongly. Between 2011 and
2022, total college enrollment dropped by 1 .2
million students. And get this, nearly a million
of that drop was male students. That's according
to Pew Research. A million fewer men going to
college over that decade. Wow. And at the same
time, enrollment in two -year public vocational
programs. It's surged. Up over 20 % just since
2020. That's over 850 ,000 new students pouring
into those programs based on national student
clearinghouse data. So a clear shift away from
traditional college and towards trades. We're
talking about plumbing. carpentry, welding, electrical.
Exactly. Those kinds of hands -on skilled trades.
And the appeal is lower cost, presumably. Definitely
lower cost than a four -year degree, usually.
But also, critically, they often lead directly
to high -paying, stable careers. There's huge
demand. Right. I saw the US Department of Labor
noted that the median wage for some skilled trades
now rivals or even exceeds many college -educated
roles. That's right. The financial return can
be quicker and, in some cases, higher, especially
when you factor in and avoiding massive student
debt. We have some great examples of this from
a CNBC deep -dive piece. Yeah, really compelling
stories. Take Morgan Bradbury. She was thinking
engineering, maybe physical therapy, typical
college paths. But then she tried welding for
an Eagle Scout badge. And she said, quote, oh,
fire. That sounds pretty fun. Ah, love that.
Right. She got hooked on building things, enrolled
in a nine -month welding course. Cost, $22 ,000.
Fraction of a university cost. Tiny fraction.
Huh. And before she even finished the course,
age 19, she lands a job. Third -class welder
at BAE Systems, earning $57 ,000 a year. Incredible.
At 19. Dan, just two years later, she's already
a second -class welder working on U .S. Navy
ships. That's a tangible fast -track career.
Absolutely highlights the immediate payoff and
the progression potential. And then there's the
other story. Chase Gallagher. A landskeeper.
Yeah. Started his business at 18. By senior year
of high school, his business is pulling in $125
,000 in revenue. Wow. While still in high school.
And he personally saved $120 ,000. So he faced
that choice. College or invest in the business.
What does his parents think? They had reservations,
the article said. Wanted him to go to college.
Understandable, given the traditional advice.
But he chose the business. Poured the savings
back into it. Fast forward to 2024. His company
did over a million in sales. A million dollars.
And his personal earnings, $491 ,000. OK, these
aren't just edge cases then. This shows a real,
viable, potentially very lucrative alternative
path. Exactly. It's a shift in mindset, prioritizing
practical skills, entrepreneurship, maybe faster
financial independence over the traditional degree
route. And it feels like this is reversing a
previous trend, right? Weren't trades less popular
for a while, maybe with millennials? Yeah, there
was definitely a decline in interest over the
past couple of decades. The Great Recession didn't
help. It pushed a lot of people towards college
thinking it was safer. But now the pendulum is
swinging back. It seems so. And there's also
federal policy nudging things along. All this
talk about infrastructure investment. Right,
the Bipartisan Infrastructure Act, the GHES Act.
Exactly. It highlights the massive need for skilled
labor, especially as baby boomers and older Gen
X workers are starting to retire in large numbers
from these fields. The demand is huge. Hey, while
you're taking all this in, just a quick reminder,
don't forget to follow, subscribe, like, and
comment on The Deep Dive. Your support really
helps us keep exploring these important topics.
OK, back to it. So we've talked about the rise
of trades, the questioning of the degree, but
it's not black and white, is it? There are counter
arguments. Definitely. While some headlines might
scream that the higher education payoff is dead,
other sources paint a different picture, especially
long term. Right. Several sources emphasize that
if you look at lifetime earnings, college often
still comes out far ahead. Like, potentially
close to a million dollars more over an entire
career compared to just a high school diploma.
A million dollars is significant. It is. And
a Pew Research study using 2022 data showed young
men aged 24 -34 with a bachelor's degree had
a median income of $77 ,000. Okay. Compared to
$32 ,000 for those with only a high school degree
in the same age group? That's a massive gap in
current earnings too. So the immediate picture
might be blurry. But the long -term financial
argument for college still seems strong according
to that data. It's definitely part of the conversation.
And it's not just about money, right? What else?
Well, the sources also point out that college
typically opens doors to a vastly broader range
of jobs, not just manual labor or trades, but
professions across countless sectors. More options,
potentially more flexibility later on. Potentially.
And then there's the argument for college beyond
just job skills training, the idea of education
for its own sake. Developing critical thinking,
broadening perspective. Exactly, preparing you
to think, to adapt, to learn how to learn skills
that are arguably more important than ever in
a world that changes so fast. Okay, so the value
proposition for college is still there, just
maybe. Yeah. Different. Or needing closer examination.
Perhaps, but the challenges for Gen Z job seekers
are very real, regardless of their path. That
Redditor quote you found really hits home. When
everybody has a college degree, nobody has a
college degree. Yeah. The dilution point again.
And beyond that, the actual process of job hunting
sounds incredibly frustrating right now. Our
sources called the current market a disaster.
A disaster. Yeah. Well, several things. There's
frustration with AI filtering resumes, good candidates
getting screened out by algorithm. Oh yeah, the
black box of HR tech. Exactly. Then... Fake job
listings companies posting roles they never intend
to fill. Why would they do that? Maybe to collect
resumes, gauge the market, look busy, who knows?
But it wastes job seekers' time. Infuriating.
And then these overkill interview processes.
Multiple rounds, complex assignments, taking
hours or days, ghosting. It's exhausting. No
wonder people are discouraged. And you mentioned
nearly half of Gen Z feel their education is
already obsolete because of AI. Yeah, almost
50%. That feeling that the goalposts are constantly
moving, that what they learned is already out
of date, it has another layer of anxiety. And
let's not forget that Walden University's study
finding Gen Z overall has the highest unemployment
compared to Millennials and Gen X. Right. Even
with this shift to trades, they're still navigating
a really tough landscape overall. Millennials
actually saw a 7 .5 unit decrease in unemployment
compared to Gen Z in that study, and Gen X an
8 .4 unit decrease. So context is important.
While trades offer a promising route for some,
the generation as a whole faces significant hurdles.
Definitely. This whole shift, though, it feels
less like just a reaction to bad circumstances
and more like a strategic recalibration. How
so? Gen Z seems to be actively consciously seeking
alternatives. Trade schools, yes, but also entrepreneurship
like Chase Gallagher, digital upscaling, boot
camps. They're looking for paths that offer tangible
security and maybe more personal fulfillment.
It feels proactive, not just reactive. I think
so. And it's a powerful move. It could inject
real dynamism into the economy, open up different
kinds of opportunities. Like one expert put it,
sometimes the smartest thing you can do is admit
you made a mistake and pivot. Maybe that's what
we're seeing on a generational scale. What an
absolutely fascinating deep dive today into Gen
Z grads. shifting employment landscape. So much
to unpack there. It really feels like we're watching
a profound reevaluation of what we consider a
valuable education and what defines a successful
career path. Absolutely. This shift is forcing
a really crucial conversation, isn't it, about
balancing traditional academics, practical skills,
and just the raw demands of the modern workforce.
The trends are pretty undeniable. Gen Z is actively
forging new paths. They seem driven by a really
sharp eye for return on investment, but also,
I think, a desire for work that feels meaningful
and stable. So we want to leave you, our listeners,
with maybe a provocative thought to chew on.
In this world where those old clear lines between
education, skills, and career success are getting
blurrier by the day, what does financial empowerment
and fulfillment actually look like for you? Is
it about sticking to that predetermined blueprint?
Or is it about being bold enough to chart your
own course, even if that means picking up a totally
new tool or starting a business in your garage?
Thank you so much for joining us on the deep
dive today. We really hope this exploration gave
you some valuable insights for navigating this
constantly evolving employment landscape. And
hey, if you want to keep digging into complex
topics just like this one, please make sure to
follow, subscribe, maybe leave us a review. It
really helps. And check out other deep dives
from the road to financial empowerment by empowering
your finance. Until next time, keep learning,
keep questioning, and keep driving your own financial
future.