Studying has been the goal of more and more young people for decades. However, a change in thinking is currently taking place in Gen Z.
Is no one from Gen Z studying anymore? No, the change is not that extreme. However, according to a report from CNBC, young people aged 18 to 25 are making different choices in their career paths compared to previous generations, particularly Millennials. Instead of studying, more are opting for trades. This includes training as mechanics, plumbers, or welders, among many others.
And there are at least the first signs of a change in thinking among Gen Z in Germany as well.
Who exactly belongs to Gen Z? The people also known as Zoomers were born no earlier than 1996 and no later than 2012. Following them is the so far theoretically describable Gen Alpha; however, most are still too young for real insights. The Millennials (Gen Y) came before Gen Z.
Many from Gen Z still find their way to universities, and some of them have initiated a project to demonstrate the dangers of AI and surveillance in everyday life:
Something tangible with good prospects
What exactly is Gen Z doing differently? According to data exclusively obtained by CNBC from data collection service Gusto, since the end of 2023, the proportion of hires of 18- to 25-year-olds in the so-called Skilled Trades
has been increasing. These can largely be compared to our training professions, with a focus on crafts or related industries.
Blue-Collar-Workers. Our translation for this would be
overalls. In contrast, there are desk jobs, also known as
White-Collar Jobs. You can read more about “Skilled Trades” at Berks.
From a low of around 24 percent in November 2023, the most recent figure for May 2024 was 31 percent of all new hires that month. However, this is not the highest value for the years 2018 to mid-2024, which was 37.5 percent in May 2021. However, the current development looks more stable and less erratic than before. This might indicate a stabilization of a trend observed for years.
Why is Generation Z behaving this way? There does not seem to be a definitive, conclusive answer to this. CNBC describes that the economic conditions under which Gen Z leaves school and enters the job market are completely different from earlier. Millennials, let alone Gen X or Boomers, were offered far more predictability to lay the foundation for their careers.
Furthermore, education or university in the USA is rarely fully funded by the state or companies. Costs can run into tens of thousands of dollars to obtain a degree. Entering “Skilled Trades” is much more affordable than going through college.
A report from the Federal Reserve Bank of St. Louis outlines the situation for the USA.
However, data from Gusto also shows that many younger workers are taking jobs from older people. In both the USA and Germany, baby boomer generations are now retiring. Employers in trades or industry also need to fill a significant portion of these positions with younger workers – and Gen Z seems ready to do so (via Destatis).
How is the situation otherwise in Germany? The statements about the USA cannot simply be transferred to Germany. There are simply too many differences in the labor market, laws, universities, and training standards. However, according to Statista, the proportion of first-time students in a year has stagnated at around 56 percent for about eight years. Additionally, the number of applicants for training positions has recently increased for the first time in the last decade (via Labor Agency).
Generation Z has been right about another labor market trend for some time, as is now evident: the 4-day workweek. Aside from some larger or smaller experiments, there is still a lack of extensive experience with the new work-time model in most countries, but Iceland is different: An island shows the world that Generation Z is right – The 4-day workweek creates satisfaction and growth
