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Why Gen Z Is Embracing Trades and Vocational Learning Over A College Education

Remember when everyone would tell you once you had a degree, you’d be set for life? Turns out, they meant you’d be set for a lifetime of disappointment instead. Back in 2009, over 70% of recent high school grads attended college. Today, enrollment is down over 15% from its peak, with more students opting for trade jobs over office gigs. Not even cringey TikToks from the Big Four accounting firms can convince them otherwise...

Career detour: In a recent survey, over half of Americans said they believe a college degree isn’t worth it. Many young people are taking their high school diplomas straight into the workforce, embracing on-the-job training and trade work. These options offer disillusioned new grads an alternative to a costly college degree — one that pays now, not later.

• According to WSJ’s Te-Ping Chen, a shortage of skilled laborers has pushed up wages — with some industries like construction now paying new hires more than professional services workers.

• The trades, once seen as “dirty” or “low-end work,” have gained new appeal thanks to technology.

Jack of All Trades

Today, more than half of workers aged 25-34 do not have a four-year degree — a trend expected to continue if new grads keep choosing alternative education. However, based on historical data, college earners make over double what their non-degree-holding colleagues make. So why is Gen Z choosing a new path?

• Layoffs at large employers and a weaker hiring market for white-collar workers have forced young people to reconsider the job stability and opportunities available to graduates.

• A new study shows that 52% of new graduates end up underemployed one year after graduation — while about a third of US companies have dropped degree requirements.

Pay up, or get paid: After four years and tens of thousands in tuition, APLU finds that you could make a median starting salary of $60K — or spare the time and expense with a trade gig. According to Indeed, high-paying trade jobs include dental hygienist ($99K/yr), construction manager ($88K/yr), and aircraft mechanic ($82K/yr). Moreover, President Biden says there are thousands more high-paying jobs that don’t require a degree, suggesting that you could end up wealthier and wiser without the cap and gown.

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LARGECAP RECAP

🪙 Memecoins Are Making An Unprecedented Speculative Comeback

Bitcoin ($BTC) and Ethereum ($ETH) might have a big leg up on the rest of crypto, thanks to the SEC’s approval of spot crypto exchange-traded funds (ETFs). But no amount of legitimacy can help them avoid crypto’s perplexing ebbs and flows. Over the past week, $BTC dropped nearly 10%, slipping below $60K, while memecoins have rallied, attracting a new wave of crypto speculators.

• In recent days, popular memecoins like the Man in Finance token, $TURBO, and the Trump-inspired $DJT token have exploded in popularity.

• The GMCI Meme Index, tracking major memecoins, has soared over 150% year-to-date — an indicator of the crypto industry’s return to speculation.

End of the cycle? Historically, tokens such as $BTC and $ETH would perform well early in bull markets before traders moved to smaller tokens and memecoins. And when memes did perform, traders saw it as an early sign of a market top.

This time, that playbook has been flipped as memecoins took off early alongside major cryptocurrencies. What sets this moment apart? The culture-fication of memecoins. Will Clemente, the founder of Reflexivity Research, notes that memecoins have become a way to “speculate on societal and cultural trends.” Today, it’s also cheaper and easier than ever to create memecoins, and while not every memecoin may endure, the broader category of speculative tokens appears here to stay.

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Markets & Economy

Apple ($AAPL) accused of EU violations: The European Union has accused the tech giant of violating its new tech competition law — a first for any tech firm. Apple faces fines of up to 10% of its global revenue, with potential increases for repeated offenses. [Read]

Hospital prices harm local economies: Rising hospital costs prompt companies to lay off workers, hurting local economies by reducing tax revenue and increasing unemployment. [Read]

Target ($TGT) expands third-party marketplace: In partnership with Shopify ($SHOP), the retail chain is expanding its third-party marketplace, Target Plus, by introducing new and trendy brands to boost online traffic and e-commerce growth. [Read]

Business & Wealth

What a real estate 401(k) means for you: Most Americans can’t afford a home in this economy, but for the lucky few who can, holding real estate assets in retirement accounts is one way that affluent investors can be rewarded — albeit with a few risks. [Read]

Do you need travel insurance? Going somewhere? You might want to get travel insurance with your flight, hotel, or other bookings — even if you have coverage through your credit card. Elliot.org’s Christopher Elliott breaks down what you need to know about buying travel insurance. [Read]

What will your hotel look like in 10 years? Hotel CEOs convened to talk about the future of hotel travel, discussing brands, rates, and AI’s impact on the industry. [Read]

DIGIT OF THE DAY

Shipping Costs Have Tripled Since Last Year as Port Congestion Returns to Pandemic Levels

Shipping companies might want to consider frequent sailor miles with all these delays due to port congestion. Since last year, Houthi rebel attacks near the Red Sea have closed the Suez Canal, causing major delays and increased congestion at ports from Singapore to Spain. These disruptions have extended voyage times, thrown schedules into chaos, and stranded containers worldwide — leading to a sharp spike in shipping costs.

• As of Jun. 14, the average global cost of shipping a 40-foot container reached ~$4.1K — more than triple last year’s price and the highest rate since Sept. 2022, according to Freightos.

• DeSales Trading’s Michael Murray notes that routes from Asia to the US East Coast are currently at $7K — a substantial rise from the pre-pandemic typical rate of ~$3.5K.

Costly currents: The ongoing crisis is taking a toll on company earnings. DFS Furniture has halved its profit outlook due to prolonged delivery delays and escalated freight costs, affecting nearly $18M worth of goods. Similarly, apparel retailer J. Jill had to resort to costly airfreight to rush items ahead of Mother’s Day impacting logistics expenses. However, Nils Haupt of Hapag-Lloyd remains optimistic, stating, “Freight rates will fall, because there is no escaping that there is a lot of extra capacity at sea.”