It’s interesting that I’m discussing skilled trades vs college degrees, considering that many of the students and families I assist are intent on pursuing higher education. There’s no definitive right or wrong choice. In my capacity as a College and Career Specialist, I often initiated conversations with the question, “What are your plans after high school?” Depending on the answer could determine which path. Ultimately, the decision rests with the individual.
Let’s look at this debate further.
With the U.S. student loan debt reaching approximately $1.77 trillion and continuing to rise, the value of a traditional four-year degree is under scrutiny. The question arises: what is the benefit if one is burdened with debt and only has a chance at securing a well-paying job upon completion?
Finding a high-paying job can be challenging for graduates carrying significant debt, and there’s no guarantee they’ll be the right fit for available positions. Employers often report that college graduates are inadequately prepared for the workforce, making it tough to find qualified candidates. Consequently, many recent graduates struggle to find employment after finishing their studies.
Considering these factors, it becomes clear that acquiring marketable skills may be more crucial than merely meeting the requirements to earn a degree.
Associate’s degrees and technical training
Instead of going for a four-year degree, you might be better off if you can develop a marketable skill through an associate’s degree and/or technical training. There are many programs available that can help provide you with real-world skills that you can put to work immediately upon completing your program. Indeed, for those with the right skill set, it’s possible to find a high-paying part-time job. Let’s face facts, Baby boomers are retiring all the time. Most of them are in the skilled trades industries. I hear from employers that with every 5 boomers that retire, only 1 or 2 folks is replacing them.
In some cases, the skills you need to land a high-paying part-time job are soft skills, like being personable or conscientious. Other part-time jobs, like becoming a phlebotomist or bookkeeper, require formal training and adherence to a set of industry standards.
Other high-paying jobs that don’t require a four-year degree can be equally rewarding, as long as you develop the right skill set. You can get a reasonably good job as a dental hygienist, radiology technician, web developer, paralegal, or surveyor without getting a “traditional” education. All you need is the right training and the right skills. Many associate’s degrees and technical training programs give you the hands-on practice you need to be immediately ready for the workforce.
Story time:
My journey unfolded like this: Growing up, my family didn’t have much wealth, and the prospect of college was never a topic at home. Breaking new ground, I became the first in my family to attend college, earning an associate’s degree from New Mexico Military Institute. Although I had plans to continue at the University of Arizona, life took a romantic turn when I met my future wife, leading us to settle in Phoenix. It was there that I began my career at Intel, marking the start of my corporate success story. Embracing life-long learning and skill development was pivotal to my achievements.
Skilled trade vs. college degree: earnings over time
The disadvantage is that individuals with bachelor’s degrees often surpass the earnings of those with an associate’s degree over time. Initially, an associate’s degree or technical training might lead to higher pay. At present, there’s a trend where individuals without four-year degrees outearn their counterparts due to a high demand for practical skills. However, over a career’s duration, those with traditional four-year degrees usually catch up and can exceed the earnings of those with associate’s degrees and technical training.
Bridging this earnings gap can span decades, especially when considering the greater debt burdens of those without bachelor’s degrees. One can acquire a marketable skill in high demand for less than $10,000 and begin making $50,000 annually in the first job. This is in contrast to a four-year degree that may cost upwards of $30,000, with graduates hoping to earn $35,000 a year post-graduation.
Nonetheless, gaining a marketable skill, such as a trade, can be a smart long-term investment. Starting with a financial advantage, and if one reinvests their earnings into additional training and skill enhancement, they could potentially stay ahead. Leveraging acquired skills to start a business could also present boundless opportunities.
In Summary:
In my discussions with students about their post-high school plans, I noticed that very few considered pursuing skilled trades. They seemed to overlook the long-term benefits. Pinpointing the exact reason for this trend was challenging. Could it be the strenuous work that skilled tradespeople endure daily? Or perhaps the misconception of insufficient earnings? Maybe witnessing the success of “few” influencers get from making videos? I highlighted that with an associate degree or technical training, one could be employed with a starting salary of about $45-50K within a year or two. Meanwhile, their peers would still have two or three years of college left and the associated costs, whereas they would be gaining experience and potential pay raises, surpassing the starting salaries of college graduates with minimal education expenses.
Regardless of the path you choose – whether skilled trade or college, committing to lifelong learning is essential. Continuously acquiring marketable skills and tools is crucial to stay competitive. As new technologies and techniques emerge, staying adaptable ensures ongoing marketability in one’s field. You should be in the driver’s seat.
