U.S. Vocational College Enrollment Up 16%
Increased Interest in Skilled Workers Due to Pandemic and AI Boom
High Demand Drives Wage Growth...Workplace Age Decreases
"If a child’s academic performance is not outstanding but they have a special talent for dealing with people, being a plumber can be the best career." Ten years ago, in November 2014, Michael Bloomberg, a billionaire and former mayor of New York City, made this remark at a gathering, drawing attention. He explained that while attending Harvard University, a prestigious school in the U.S., requires paying $50,000 to $60,000 annually (68 million to 81 million KRW) in tuition, plumbers can earn more money based on their skills without having to pay such high tuition fees.
Former Mayor Bloomberg’s statement is becoming a reality, especially among Generation Z in the U.S. On the 1st (local time), The Wall Street Journal (WSJ) focused on "How America’s Generation Z became the 'Toolbelt Generation,'" reporting that "amid growing disillusionment with college, more young people are choosing careers as plumbers and electricians." This means that more young people who used to enter college immediately after high school are now pursuing skilled trades such as plumbing and welding.
According to the National Student Clearinghouse, enrollment in vocational education-focused community colleges increased by 16% last year compared to the previous year. During the same period, enrollment in four-year universities increased by only 0.8%, and general community colleges by 2.6%, showing a faster growth rate in vocational education. WSJ noted this as "the largest increase since data collection began in 2018." By sector, the number of students in construction increased by 23%, and those in HVAC (heating, ventilation, and air conditioning) facility management rose by 7%.
Student loan debt after entering college becomes a burden for young adults starting their careers. George Belcher, an 18-year-old living in Houston, dreamed of college life throughout his school years but developed an interest in the oil industry where his father works just before graduating high school and ultimately decided to enroll in a two-year vocational community college.
Tanner Bugis, a 20-year-old currently working as a welder at a hospital construction site in San Diego, gave up on college after seeing his parents, who worked in IT companies, spend all day in front of computers during the pandemic. He applied for welding training last year, studied for nine months, and then started working on-site. He said, "I feel good at the end of the day. I feel physically active and accomplished something."
The COVID-19 pandemic served as a catalyst for young people like Bugis to become interested in on-site jobs. Michael McGraw, director of the Pennsylvania Plumbers and HVAC Technicians Association, said, "After COVID-19, many people recognized that being a technician is a career that can sustain a livelihood," adding, "At that time, many companies eliminated offices, so skilled trades were seen as stable and well-paying careers."
The high wages of skilled tradespeople on-site have also played a role in attracting young people. In the U.S., chronic labor shortages and an aging workforce have made it difficult to secure skilled technicians on-site. As demand for labor increases but supply cannot keep up, wages have naturally risen.
According to statistics from the U.S. employment information company Automatic Data Processing (ADP), the median starting salary in construction last year was $48,089, up 5.1% from the previous year. This significantly exceeded the median starting salary in professional services such as accounting, which was $39,520. Construction starting salaries have been higher than those in professional services or IT maintenance for four consecutive years. McGraw said, "Graduates of the vocational schools run by the association earned $35,000 annually five years ago, but recently their salaries have risen to around $60,000."
In addition, the surge in generative artificial intelligence (AI) since last year has sparked interest in blue-collar jobs. Various studies suggest that generative AI is likely to replace white-collar office jobs, leading more young people to learn technical skills. In this atmosphere, the average age of skilled tradespeople in the U.S. is decreasing. WSJ reported, citing federal government data, that the median age of carpenters in the U.S. dropped from 42.2 to 40.9 over the past decade. The median age of electricians also fell by 2.9 years during the same period. WSJ added that plumbers and HVAC technicians are also becoming younger.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
