Shocking Data: 40% of Grads Underemployed!

Graduation cap and diploma resting on a pile of money

Soaring student debt and a bleak job market are driving a hard rethink of the college-for-all agenda, as conservative leaders spotlight skilled trades and entrepreneurship as smarter paths for Gen Z.

Story Snapshot

  • Think tank president Terry Schilling urges Gen Z to pursue trades over college amid skyrocketing tuition and unemployment
  • Federal data shows underemployment for recent grads exceeds 40% as student loan delinquencies surge
  • Skilled labor shortages give trades new economic clout, challenging the left’s college-centric narrative
  • Debate intensifies over college value, with conservative groups demanding alternatives to progressive education policies

Conservative Leaders Push for Alternatives as College Dream Fades

Terry Schilling, president of the American Principles Project (APP), is publicly urging Generation Z to reconsider the traditional college pathway and instead explore skilled trades or entrepreneurship. This shift comes as the labor market for young college graduates deteriorates, with the Federal Reserve Bank of New York reporting a sharp rise in unemployment and underemployment among recent grads. Student loan delinquencies spiked in August 2025 after the end of the COVID-era repayment moratorium, further fueling doubts about the traditional higher education model. Schilling’s message resonates with families frustrated by mounting tuition and debt, and with employers desperate to fill skilled trade positions.

Rising tuition costs—now averaging over $50,000 annually at private colleges—have pushed many families to the breaking point. The decades-long societal bias that equates college with economic mobility is being challenged not only by economic data but also by persistent skilled labor shortages in fields like electrical work, plumbing, and carpentry. The result is a critical disconnect: while young Americans accumulate debt and struggle to find degree-relevant jobs, employers in essential trades face a dire lack of qualified candidates. Public figures such as Mike Rowe have long warned that neglecting skilled trades could undermine U.S. infrastructure and manufacturing, and conservative advocates are now amplifying these concerns in the national debate.

APP’s Call to Action: Redefining Success for Gen Z

APP’s campaign, led by Schilling, is leveraging these economic realities to argue for a fundamental rethinking of education and workforce priorities. The organization, rooted in family policy advocacy, frames the traditional four-year degree as increasingly risky for many young people, especially those not pursuing high-demand or specialized fields. Their position is supported by recent labor market data: unemployment among college graduates aged 22-27 has climbed to 4.8%, and underemployment stands at an alarming 41.3%. These trends pressure policymakers, employers, and families to consider vocational training and apprenticeships as practical, financially responsible alternatives that do not saddle students with crippling debt.

Societal attitudes are slowly shifting as a result. Employers, facing acute labor shortages, are more willing to hire candidates without college degrees if they can demonstrate skills and experience. Meanwhile, colleges and universities—long protected by government subsidies and cultural prestige—face growing scrutiny over their rising costs and the real-world value of their degrees. The debate is no longer just academic: it directly impacts Gen Z, who now weigh the risk of debt against uncertain job prospects.

Economic and Political Stakes: Shaping the Future of American Work

The implications of this shift are profound. In the short term, there is greater public scrutiny of college costs and louder calls for workforce development programs that align with labor market needs. Parents and students, wary of the progressive education establishment and its focus on “woke” curricula, are looking for alternatives that protect family finances and conservative values. In the long term, policy changes could expand apprenticeships and credentialing, reduce the student loan burden, and restore respect for skilled trades as a foundation of American prosperity. The higher education sector, facing declining enrollment and increased competition from alternative training, must now prove its worth in a way it hasn’t been forced to in generations.

This debate over college versus trades is now front and center in the national conversation, fueled by conservative advocacy and hard economic facts. While some experts still argue that college is essential for certain professions or long-term earnings, the evidence is clear: for many young Americans, skilled trades and entrepreneurship may offer a more reliable path to economic security and personal fulfillment. As the Biden-era policies of unchecked spending and leftist education mandates fade, the Trump administration’s focus on empowering states, families, and local communities to make education decisions is gaining traction. This realignment promises not only to address labor shortages but also to defend traditional American values against the overreach of the progressive educational bureaucracy.

Sources:

Terry Schilling | Hillsdale College DC

APP Staff | American Principles Project

APP Board | American Principles Project

American Principles Project – Wikipedia

American Principles Project | InfluenceWatch