Introduction

Over the last several years the U.S. economy has made historic investments in its infrastructure. This has happened at all levels of government, and in the private sector. Simultaneously, many young workers (18-25 years old) have decided not to pursue a traditional college education: there are about 2 million fewer students on college campuses today than in 2011. Many of these people are increasingly choosing the trades.

Whether it’s due to feeling disheartened by traditional college campuses after the Covid-19 pandemic, the long-term industry damage from the Great Recession that created a significant skills gap and drove up demand and wages for skilled workers, or a desire to chart their own course, young workers are increasingly turning to the trades as a viable career path. These fields not only offer a solid foundation for building a successful career but also provide opportunities for developing skills that can be used to start their own businesses in the future.

Key findings

• Hiring for skilled trade workers has been on the rise since 2019. Skilled trades have been adding more workers to their payrolls every year since 2019. This increases the number of people who have skills necessary for growing the U.S. economy for the long-run.
• The share of new hires who are 18-25 year olds has been increasing in high skilled trades. On average, the share of new hires aged 18-25 in the housing construction industry has increased by nearly 4% annually since 2019. Housing and commercial construction, electrical contractors, and residential remodeling have all seen significant gains in GenZ hires over the last 5 years. 
• Wage growth in the skilled trades has exceeded inflation. One reason skilled trades are an attractive career choice is because wages have increased due to increased demand for both employees and for the services that skilled workers can provide. 18-25 year olds have particularly benefited with the average hourly wage for a worker in a trade industry exceeding inflation by 16%.

Hiring for skilled trade workers has been on the rise since 2019

For the past five years, U.S. employers have been growing their payrolls as measured by the net hire rate, which accounts for only new jobs over the previous month by subtracting out terminations (both voluntary and involuntary). The average monthly net hiring in each year for all employers in the U.S. economy was about 4%, but many of the skilled trades were at least double this level during the same period.

Skilled trades saw an increased demand through limited housing supply; historic local, state, and federal investment in infrastructure repair; reshoring manufacturing; and replacing an aging workforce. This increased demand led to overall increases in employment, but 18-25 year olds particularly benefited from this increased hiring.

18-25 year olds are a larger share of new hires in the commercial construction, residential construction, and electrical contracting industries

Over the past five years, young workers have increasingly pursued skilled trades. In fact, in 2024 18-25 year olds accounted for nearly 25% of all new hires in skilled trade industries, even though they only account for about 14% of the overall working population. This represents an increase in the share of new hires that are young workers in these fields compared to just five years ago. The chart above illustrates the average growth in the share of new hires aged 18-25, compared to all hires across various trades and specific skilled trades, from 2019 to 2024. On average, the share of 18-25 year olds who are in the housing construction and electrical contracting industries increased by 3.7% and 2.9%, respectively. While manufacturing pulled the overall average down, skilled trades have remained a consistent growth industry for early career workers since 2019.

This increase in both the demand for entry level workers in these fields and the interest from young workers shows that new workers are approaching their place in the economy in ways that are slightly different from their millennial counterparts. More and more 18-25 year olds are choosing skilled trades as a rewarding and viable career path, opting for this hands-on, in-demand field over traditional college routes. In the skilled trades entry level workers can earn an income, build skills on which they can form a career, and benefit from increased work available through government investments.

Wage increases in some high-growth trades have outpaced inflation

One key reason that the skilled trades have seen an increase in interest from 18-25 year olds is because employees in these industries have seen substantial wage growth, in many cases surpassing inflation. A confluence of factors: general inflation experienced during this time, a gap between necessary skills and the open labor force, and overall demand to complete projects means that workers in these fields could demand a higher overall wage.

Increases in wages were not concentrated among the most experienced workers in the high growing trade industries. During the period from 2019-2024 increases in wages for 18-25 year olds, mostly workers who are starting their careers, exceeded the average overall increase and most high-growth skilled trades exceeded the inflation rate of 24.6% during this period. This means that most of the increase can be attributed to young workers. Indeed, for all industries except housing construction and manufacturing the average wages in high-growth trades outpaced inflation. With increased demand for these workers through an aging workforce and an increase in the amount of work available, young workers are turning to the trades to both increase their current income in real dollars and gain skills that will help them build earning power in the future.

Conclusion

The growing demand for skilled trades, combined with more young workers entering these fields, highlights a promising shift in the U.S. workforce. As infrastructure investments increase and labor shortages persist, skilled trades offer young workers stable careers and the chance to develop valuable skills. With wages outpacing inflation, these fields are becoming an attractive alternative to traditional college paths. As more 18-25 year olds embrace these opportunities, the future looks bright for both the workers and the economy. Investing in training and support will help ensure they are well-prepared for a changing job market.

Methodology

We define the working age population to be people aged 18-65. Skilled trades were determined by employers using Gusto in traditional trades NAICS codes, and skilled trade employees were identified as employees of those businesses who are paid an hourly wage. To overcome sample size concerns we aggregate similar NAICS into umbrella sectors used in this report.