Sam Pillar is the co-founder and CEO of Jobber.
They may be difficult for some to understand or relate to, but it is becoming increasingly clear that Generation Z is a generation of doers. They take action and want to call the shots. It is therefore not surprising that many young people are attracted to entrepreneurship.
According to the first edition Jobber’s Blue Collar ReportIn a survey of 1,000 people aged 18 to 20 in the US, nearly two-thirds (63%) said they wanted to start their own business at some point in their lives, and 11% had already done so.
This is wonderful news. Small business is the engine of our economy. But what kind of business should they start? The very obvious answer lies in transactions.
Case for trade
We’ve also spoken with thousands of home service business owners, and finding reliable labor is a challenge that every one of them faces. If you’ve tried to call a plumber, HVAC technician, or any other professional to do a job around your home, you’ve likely experienced the labor shortage firsthand.
Homes and other infrastructure are aging. Today, the average age of an owner-occupied home in the United States is 40 years, which means there is a growing need to repair, maintain and remodel the aging housing stock.
At the same time, skilled workers are retiring and not enough young people are taking their place. Experts predict what will happen 73,500 openings every year only for electricians until 2032. This results in service delays and increased costs for consumers.
Answering the call for blue collar workers
The labor shortage is a major challenge, but also a huge opportunity for ambitious young people to come in and fill the gap. Luckily, we are seeing Gen Z showing interest in taking advantage of this opportunity.
Three quarters (75%) of our respondents said they were interested in exploring vocational schools that offer paid on-the-job training. They are worried about paying off their loans and want to start building their career without going into debt. They are also looking for stable work. Job security was cited by respondents as one of the most important factors when choosing a career. They are very aware of advances in technology and artificial intelligence and are concerned about finding jobs that may be disrupted by automation in the coming years, many of which are in white-collar industries.
This trend is gaining momentum, and the number of students enrolled in career-oriented community colleges is increasing. Enrollment grew 16% last year, its highest level since National Student Information Center began tracking this data in 2018. But this is not enough to fill the gap.
What’s holding Generation Z back?
Trading careers are still stigmatized, and society continues to emphasize that traditional college degrees are the only path to success. 74% of our respondents believe there is a stigma associated with attending a vocational school instead of a traditional four-year university, and 79% say their parents want them to pursue a college education after high school, while only 5% say that the same about the Vocational School.
Another obstacle is that Gen Z underestimates the potential income from such deals. The majority of our survey respondents believe it is impossible to make a seven-figure income doing tree care, lawn care, or plumbing. However, our data on more than 200,000 service professionals shows that it’s not just the construction business that can make big profits. More than 50% of tree, lawn and plumbing care businesses earn at least $1 million annually.
Chase Gallagher owns one of these businesses. Chase started his lawn care and landscaping business, CMG Landscaping, when he was just 13 years old. In the time it took his peers to graduate from college, he has grown his business into a multimillion-dollar enterprise and is on his way to achieving his dream. His story is just one of many like it.
It’s time for the next generation of tool belts
To address the skills shortage and get more young people involved, we can start by investing in and promoting the entrepreneurial and financial opportunities that the trades provide through the media, social media and in our communities. Parents, influencers and educators should encourage young people to explore more varied career options and consider the profession as a lucrative and fulfilling career. Vocational programs should be promoted early along with traditional colleges.
We need to support businesses that want to provide training and apprenticeship opportunities. As well as pushing for more government funding in this area, if you know of a business that offers apprenticeships or mentoring to young people in your community, consider them first the next time you need some work.
There is a lot we can do to reverse the stigma associated with trafficking. Sharing stories like Chase’s helps, but it can also be as simple as showing respect to these workers and thanking them for all they do. We need to recognize and value the important work of industry professionals. Together, these actions can create enormous opportunities for the next generation, small businesses and the economy.
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