Negative stigmas, an aging population and economic pressures have contributed to a persistent labor shortage across health care, manufacturing and skilled trades in the U.S. over the last decade. With 2.4 million workers set to retire in 2025, the situation is expected to worsen. Over the next ten years, Deloitte projects 3.8 million new manufacturing jobs will be created, largely driven by retirements, while Mercer predicts a deficit of 100,000 health care workers by 2028.

To address this problem, employers and education institutions are working to attract new talent by raising awareness for these careers, challenging outdated stereotypes and connecting Gen Z with educational pathways that lead directly to employment.

These efforts appear to be making an impact. A 2025 report by Ready to Hire, “Gen Z in the Skilled Workforce,” shows that 70% of Gen Z individuals who are considering careers in the skilled workforce would be “extremely likely” to join an employer-sponsored skills-based training program that led directly to employment. This signals a growing desire among younger generations for financial support in training and a clear, direct path to the workforce.

So, what is leading Gen Z to pursue careers in the trades? And for those who have yet to embark on a career in the skilled workforce, what barriers are holding them back?

Stability and Growth: Understanding Gen Z’s Career Priorities

This generation is less concerned with the negative stereotypes, like financial status, not attending a traditional university or the job being “dirty,” that are traditionally associated with the skilled workforce, focusing instead on securing a stable income and future career growth.

The report cites job stability (58%), salary (55%) and alignment with personal beliefs (36%) as prime factors influencing Gen Z’s skilled workforce career choices. Many Gen Z workers also value continuous learning and advancement as a priority. These workers seek assurance that their employers will invest in their development throughout their careers, especially amid industry changes and job transitions.

By understanding the factors driving Gen Z career choices, employers can tailor workforce initiatives that resonate deeply with this generation.

To truly empower this “toolbelt generation,” it’s essential to provide Gen Z workers with access to educational materials to drive continuous learning and career advancement, which is increasingly important as 81% of Gen Zers say training would encourage them to stay at a company longer. Doing so will also ensure that workers are gaining essential skills for the current job market.

Here are key strategies for how employers and learning and development leaders can achieve these goals:

Build Opportunity Awareness

Connecting with younger generations long before they begin exploring career options is crucial, especially since 62% of aspiring skilled workforce workers start planning their careers in high school. We even see some industries, associations and employers start building career awareness into middle school. This underscores the importance of exposing students to a variety of career paths from an early age. Developing curriculum where students are made aware of the different career paths in the skilled workforce will make those careers a more viable option for young workers.

Fostering partnerships between educational institutions and local employers is an effective strategy to accomplish this goal. For example, school districts can collaborate with local manufacturing businesses to develop coursework that provides students with real-world industry experience. Such programs are instrumental in familiarizing students with the trades, helping them feel more comfortable and informed about what these jobs entail, rather than relying on outdated misconceptions. These programs also allow business leaders to prepare a generation of workers who fall in line with their talent needs. For example, if an electrician is expected to be a priority role in upcoming years, local companies can focus on teaching students those skills opposed to a plumber, building interest in relevant areas.

It’s also essential to meet Gen Z where they are. While 64% of young workers in the skilled workforce report being heavily influenced by their parents and friends when deciding on careers, 30% are using social media to explore job opportunities. Reaching them on the platforms they’re actively using to research job opportunities, such as LinkedIn (45%), Reddit (42%), Facebook and YouTube (both 29%), will expose young professionals to career pathways they might not have otherwise considered.

Break Down Barriers and Build Accessible Programs

Building awareness is only half the battle. Workers need access to effective, accessible and affordable training programs that support upskilling and continuous learning in these fields of work. In fact, 38% of Gen Z cite financial barriers to learning as major obstacles to pursuing careers in healthcare, manufacturing or skilled trades. Otherwise, 85% would “definitely” pursue these fields if financial support for training were guaranteed. Additionally, many Gen Z skilled workers feel unprepared by their current training; over half express a desire for more preparation, particularly in hands-on experience and tech-focused training.

To address these entry barriers, employers and educational providers need to develop programs that alleviate the financial pressures young workers face. Offering options such as train-to-hire programs, paid apprenticeships or guaranteed reimbursement after a year of employment can not only help ease financial concerns but also remove barriers to role-aligned training and certifications, ultimately creating a new pipeline of qualified talent. Learning and development (L&D) leaders can create programs where unskilled workers are hired to be put through an organized training program, with a guaranteed full-time role upon completion. In these programs, company-specific skills can also be taught, setting workers up for a successful career and improving employee retention.

However, addressing financial issues and talent barriers alone won’t suffice; students also need to feel adequately prepared for their roles. L&D programs must include a hands-on component that ensures candidates are ready to be productive from day one on the job — and less likely to leave their position due to misaligned expectations or lack of practical experience.

A great example of this balance is The Home Depot, who invested $6 million in skilled trades training to fill over 400,000 job openings across construction through partnerships and scholarship opportunities. This type of alignment, accompanied by financial support, will better equip students with the necessary skills for success in their positions.

Foster the Next Generation’s Interest in Skilled Trades

Gen Z’s growing interest in the skilled workforce is promising for employers who have struggled to find talent for decades. However, it’s crucial to provide these young workers with access to proper training and development to keep them engaged. As younger generations face challenges entering the white-collar workforce, now is the time to shift the narrative around skilled trades and raise awareness that a traditional four-year degree is not the only path to acquiring knowledge and securing full-time employment.