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Data from Gusto, a company that helps U.S. businesses manage their workforce, shows there were about 2 million fewer American students enrolled in college in 2024 compared to 2011.

In the first quarter of 2024, Americans aged 18 to 25 made up nearly 25% of all newly hired workers in technical fields such as construction, electrical work, auto repair, and plumbing, even though they represent only about 14% of the overall workforce, said Gusto.

According to CNBCthe main reason many young people are opting for vocational training and entering the workforce earlier is the rising cost of higher education in the U.S.

From 2011 to 2023, the average cost of one year at a public university increased by 30%, while private universities saw an even higher increase of 42%. This data comes from the Education Data Initiative, an organization that collects higher education data in the U.S.

Instead of taking out loans to attend college, many young people in the U.S. are choosing vocational training and entering the workforce earlier, CNBC reported.

The report mentioned Morgan Bradbury, 21, who became familiar with welding while in high school and then enrolled in a nine-month vocational program at the Universal Technical Institute, which cost around US$21,000. Before she even graduated, Morgan was hired by a company with a starting salary of $57,000 per year.

Chase Gallagher, 24, began doing gardening work at the age of 12 as a part-time job to earn spending money. By 18, with his experience in gardening, he started his own professional gardening service. In 2024, Chase’s company surpassed $1 million in revenue and $500,000 in profits, as reported by CNBC.

According to the Federal Reserve Bank of New York, in the broader U.S. labor market, people with college degrees still earn higher wages. The average salary for a worker with a bachelor’s degree in 2024 is $80,000 per year. In the U.S., the return on investment in a college education is currently 12.5% per year.

However, according to data from the U.S. Bureau of Labor Statistics (BLS), job stability in industries like construction, manufacturing, and transportation is higher than in traditional office jobs. These industries, which employ many manual laborers, report lower layoff rates compared to the service and business sectors, which employ more “white-collar” workers.

Senior economist at payroll and benefits platform Gusto, Nich Tremper, explains that as older workers gradually leave the labor market, young workers will have more opportunities to develop their careers and build their own businesses.

“As these folks age out,” he said, “Gen Z workers are going to be able to move into a space where they’re building their own businesses, adding to the dynamism of the economy and really providing a lot more opportunity for themselves financially.”