Gen Z Ditches College Degrees for Trades in AI Era

Generation Z is disillusioned with college degrees, seen as obsolete amid AI automating entry-level jobs, surging unemployment, and mounting debt. Many pivot to trades, reskilling, and entrepreneurship. Experts urge bold educational reforms to prepare for an AI-driven economy.
Gen Z Ditches College Degrees for Trades in AI Era
Written by Dorene Billings

In the rapidly evolving world of work, Generation Z is confronting a harsh reality: the traditional college degree, once a golden ticket to prosperity, is increasingly viewed as a relic in an era dominated by artificial intelligence. Recent graduates, burdened by student debt and facing a job market where entry-level positions are vanishing, are questioning the value of their education. According to a report from Fortune, nearly half of Gen Z and millennials now consider their college experience a waste of money, exacerbated by AI’s encroachment on roles that once required a bachelor’s degree.

This sentiment is echoed in unemployment statistics. The New York Times reported in May 2025 that the jobless rate for recent college graduates has surged as companies leverage AI to automate entry-level tasks, effectively sidelining young workers before they even start. Economists point to this as a structural shift, where skills like data analysis or basic coding—hallmarks of many undergraduate programs—are now handled by algorithms with unprecedented efficiency.

The AI Disruption in Entry-Level Jobs

Goldman Sachs economist Joseph Briggs, as cited in a recent article from The Economic Times, warns that Gen Z tech workers are particularly vulnerable, with AI poised to replace them in junior roles first. This prediction aligns with broader trends; a McKinsey study highlighted in NewsNation shows younger workers pivoting to blue-collar trades as white-collar opportunities dwindle under automation’s shadow.

The education system itself is under scrutiny for failing to adapt. Vice’s April 2025 piece argues that Gen Z’s bitterness stems from accruing debt for degrees rendered obsolete by AI, with tools like advanced chatbots outperforming humans in tasks once deemed degree-worthy. Posts on X from influencers like Wes Roth in April 2025 capture the frustration, noting how employers now prioritize “prompt engineering chops” over traditional credentials.

Rethinking Higher Education’s Promise

Experts are calling for a overhaul. A Fortune article from March 2025 blames colleges for issuing “worthless degrees” amid rising numbers of Gen Z not in education, employment, or training (NEETs), labeling it a “system of broken promises.” Bill Gates, in a recent address covered by HR Grapevine, urged graduates to embrace AI but not rely on it for job security, suggesting reskilling in areas like AI ethics or hands-on trades.

This pivot is already underway. CIO’s analysis from August 2025 indicates Gen Z job seekers are exploring paths outside tech, such as vocational training, to navigate the uncertainty. A Burning Glass Institute study, referenced in recent X posts by AI News, reports a 30-year low in degree value, with underemployment soaring as AI handles junior tasks.

Policy and Institutional Responses

Institutions are responding unevenly. Some universities are integrating AI literacy into curricula, but critics argue it’s too little, too late. US News opinion piece from July 2025 questions what careers remain for Gen Z, warning that preparation for nonexistent jobs is a growing crisis. Meanwhile, federal funding for higher education—over $112 billion annually, as noted in X discussions by DOGEai—continues to prop up a system accused of administrative bloat over practical skills.

The long-term implications are profound. As Megan McArdle posited on X in May 2025, degrees obtained with AI assistance may lose signaling value to employers, potentially leading to a collapse in the higher education model. For industry insiders, this signals a need for adaptive strategies: companies must rethink hiring, focusing on human-AI collaboration, while educators redesign programs for resilience.

Paths Forward for Gen Z

Amid the gloom, opportunities emerge. Gen Z is innovating with side hustles and reskilling, as detailed in futurist Chris Kalaboukis’s X post from August 2025, which highlights pivots to trades and entrepreneurship. A comprehensive Fortune deep dive from August 9, 2025, underscores how the old system has failed this generation, urging a reevaluation of education’s role in an AI-driven economy.

Ultimately, the convergence of AI and education demands bold reforms. Without them, Gen Z’s disillusionment could reshape societal norms around work and learning for decades to come.

Subscribe for Updates

WebProBusiness Newsletter

News & updates for website marketing and advertising professionals.

By signing up for our newsletter you agree to receive content related to ientry.com / webpronews.com and our affiliate partners. For additional information refer to our terms of service.

Notice an error?

Help us improve our content by reporting any issues you find.

Get the WebProNews newsletter delivered to your inbox

Get the free daily newsletter read by decision makers

Subscribe
Advertise with Us

Ready to get started?

Get our media kit

Advertise with Us