Exploring the Benefits of Trade Schools: Lower College Costs with More Job Opportunities

There is no denying that the US workforce is aging rapidly. In 2016, the baby boomer generation began turning 65 at a rate of 10,000 people per day. The Bureau of Labor Statistics report released in January 2023 projected 45% of the US workforce will be over the age of 45 by 2030. This represents a 25% increase since 2001.  

The industries most affected by this trend are those in the trades, such as Manufacturing and Construction. Currently, 48% of the manufacturing workforce and 43% of the construction workforce are 45+ years old. The Manufacturing Institute predicts there will be more than 2,000,000 unfilled jobs in the industry by 2030, costing the economy a staggering $1 trillion. In the Construction sector, the Associated Builders and Contractors Organization reported earlier this year that the industry needs to attract over 500,000 workers to meet the demand for 2023. In order for these industries to continue growing, a new generation of workers must join. Unfortunately, for various societal and economic reasons, the next generation hasn’t been encouraged to enter these crucial industries.  

So, what does all of this mean for workers? It means opportunity. Most jobs in Construction and Manufacturing only require a high school diploma or an associate degree in a trade.  

The next generation of workers has been encouraged to pursue careers where a four-year degree is a requirement. This, coupled with favorable financing options, has caused the costs associated with obtaining such degrees to skyrocket, with current levels reaching around $25,000 per year, resulting in a total cost of $100,000. Most students borrow, with an average term of 20+ years for repayment, and accrue a little over $20,000 in interest. According to a recent article published by Forbes, the median first-year salary across all four-year degree pursuits is $48,000, with STEM degrees averaging $60,000.  

Conversely, obtaining a high school diploma doesn’t require any additional cost, and trade schools are significantly more affordable than four-year colleges. According to the National Center for Education Statistics, the average cost of attending a technical school is around $8,000. Many states, like Missouri, offer programs such as Missouri’s A+, which covers a significant portion of the total cost of a trade school education, making it even more economical. As of 2023, entry-level salaries for Tech School graduates are around $42,000, but they quickly increase to $60,000 or more with 2 to 3 years of experience.  

Currently, the shortage of workers in the trades has reached a critical level, prompting companies to offer sign-on bonuses and generous benefits. In conclusion, if someone is considering which educational path to follow, obtaining a high school diploma and attending a trade school will lead to a starting salary and benefits that are currently comparable to those of a four-year degree, without the tremendous debt burden that many individuals face.