Closing the GenZ Skills Gap

Ready to Hire, part of the skills training business of Cengage Group, a global edtech company, today released its Gen Z in the Skilled Workforce report – which surveyed 525 Gen Zers (age 18-29) currently working in or considering entry-level roles in manufacturing, skilled trades and healthcare – to better understand how they discover and evaluate career pathways. The research comes as industry estimates suggest that 4.2M U.S. workers are planning to retire next year, highlighting the urgent need for organizations to reach this next generation.

“Organizations that rely on a skilled entry-level workforce and face an aging workforce with significant retirements expected in the next year are under significant pressure to attract the next generation,” said Rya Conrad-Bradshaw, SVP, Cengage Work and General Manager, ed2go and Ready to Hire. “Many specialized roles in manufacturing and healthcare require students to self-fund certification programs, which our research shows can be a critical barrier to entry for Gen Z jobseekers.”

In fact, 98% of Gen Z jobseekers say they would be more likely to pursue an entry level career in skilled trades if training was funded, and nearly 1 in 4 (23%) cite financial resource barriers as a primary obstacle. Nearly 3 in 4 (70%) indicated they’re “extremely likely” to pursue programs offering paid training in skilled trades that lead directly to employment.

Beyond financial challenges, respondents expressed feeling underprepared by their training. Less than half (45%) in skilled trades roles felt that their training fully prepared them for their responsibilities and 20% of those who were looking for jobs in the skilled trades reported a lack of qualifications to move forward with applications. Just over half (52%) want more preparation for their roles, citing gaps in hands-on experience and tech-focused training.

“As these results show, the high cost of training, along with inadequate training programs, are major obstacles in connecting this generation to skilled trades,” said Conrad-Bradshaw. “Removing these barriers and offering better access to affordable and comprehensive training programs gives organizations a competitive edge in attracting this generation and nurturing the next wave of loyal talent.”

Additional Key Findings:

Gen Z career choice driven by job stability, salary – When deciding to pursue their career, respondents indicate job stability (58%), salary potential (55%) and alignment with personal values or interests (36%) as top drivers. Further, nearly 3 in 4 (74%) Gen Z workers say they are satisfied or very satisfied with their current jobs and nearly 1 in 3 (28%) plan to stay in their field of work for more than 10 years.

Gen Z also has strong interest in development opportunities – 70% are “extremely likely” to pursue programs offering paid training in skilled trades that lead directly to employment. Additionally, many respondents (over 78%) said they want to see growth paths and skill development plans before committing to a role. This echoes findings in the 2024 Cengage Group Employability Report, which found that 69% of respondents wished their college or learning programs worked more closely with employers to develop hands-on learning courses.

The optimal time to reach this generation is during high school – Nearly two thirds (62%) of aspiring workers started considering career paths during high school or immediately after graduation. This represents an opportunity for organizations to collaborate with local high schools to offer hands-on learning opportunities, allowing students to explore the potential of these careers.

Friends and family provide strong influence over other sources – The report found that 64% of those working in the skilled trades first learned about their current field through family and friends, while only 10% were influenced by career guidance programs and 9% by social media.

Gen Z conducts extensive online research when job hunting – a significant number (over 85%) checked job boards, LinkedIn (45%), Reddit (42%) and YouTube (29%) for professional opportunities and employer research.

To learn more and to download to the Gen Z in the Skilled Workforce report, visit readytohire.com/blog/gen-z-in-the-skilled-workforce/.

Kevin is a forward-thinking media executive with more than 25 years of experience building brands and audiences online, in print, and face to face. He is an acclaimed writer, editor, and commentator covering the intersection of society and technology, especially education technology. You can reach Kevin at KevinHogan@eschoolnews.com

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