Skilled Trades vs College Degree: Salary, Growth, and Job Security Compared
Is a college degree still worth it? We compare skilled trades against degree-required careers using salary data, growth rates, and ROI analysis.
The debate between skilled trades and a college degree has intensified as student loan debt ballooned past $1.7 trillion and trade worker shortages reached historic levels. For decades, the default advice was to get a four-year degree. But the data increasingly shows that this one-size-fits-all guidance leaves a lot of money and opportunity on the table. Let us compare these two paths on the metrics that actually matter: salary, growth, job security, return on investment, and quality of life.
The Cost of Entry
The financial starting point for each path could not be more different.
| Four-Year College Degree | Trade Apprenticeship | |
|---|---|---|
| Tuition / Training Cost | $100,000 – $250,000 | $0 – $25,000 |
| Duration | 4 years (full-time, no income) | 1 – 2 years (trade school) or 4 – 5 years (apprenticeship with pay) |
| Earn While Training? | Limited (part-time work) | Yes — apprentices earn a salary from day one |
| Typical Debt at Completion | $80,000 – $200,000 | $0 – $10,000 |
| Forgone Earnings (Opportunity Cost) | $120,000 – $200,000 | Minimal — earning throughout |
| Typical First Salary | $45,000 – $55,000 (many fields) | $55,000 – $65,000 (journeyman rate) |
Before a single paycheck from the destination career arrives, the college graduate is often $100,000 to $200,000 behind the trades worker in net financial position. This head start has profound compounding effects on long-term wealth building.
Salary Comparison: The Real Numbers
The common assumption that degrees always lead to higher salaries is a myth when you look at specific occupations rather than broad averages.
High-Paying Trades vs. Degree-Required Careers
| Career | Path | Median Salary | Top Earners |
|---|---|---|---|
| Elevator Installers | Trade | $97,000 | $120,000+ |
| Electricians | Trade | $61,000 | $100,000 – $120,000+ (industrial / renewables) |
| Plumbers | Trade | $60,000 | $80,000 – $150,000+ (masters / business owners) |
| HVAC Technicians | Trade | $57,000 | $80,000+ (commercial / industrial) |
| Industrial Machinery Mechanics | Trade | $59,000 | $80,000+ (semiconductor / energy) |
| Welders | Trade | $47,000 | $75,000 – $100,000+ (underwater / pipeline) |
| Marketing Specialists | Bachelor's | $68,000 | $90,000 – $120,000 |
| HR Specialists | Bachelor's | $64,000 | $85,000 – $110,000 |
| Elementary School Teachers | Bachelor's (+ master's for advancement) | $61,000 | $75,000 – $90,000 |
| Social Workers | Bachelor's (master's for clinical) | $55,000 | $70,000 – $85,000 |
The pattern is clear: many trades careers match or exceed the salaries of popular bachelor's-degree-required fields, especially when you factor in overtime pay, which is standard in trades but rare in salaried office positions.
Job Growth and Demand
The skilled trades are experiencing a workforce crisis. According to industry groups, over 650,000 additional construction workers are needed annually to keep pace with demand. The situation is similar in electrical, plumbing, and HVAC fields. This shortage is driven by two factors: a wave of retirements among baby boomer tradespeople and decades of cultural bias steering young people toward college instead of trades.
By contrast, many degree-required fields are experiencing oversaturation. College-graduate underemployment (graduates working in jobs that do not require a degree) is estimated at 40 to 50 percent for recent graduates. This means nearly half of new degree holders are not using their expensive education in their first jobs.
BLS projections reinforce this picture. Electricians are projected to grow 11 percent, HVAC technicians 6 percent, and plumbers 6 percent. These rates are above the national average and represent strong demand in absolute terms.
AI and Automation Risk
This is where trades hold a decisive advantage. Physical trades work requires navigating unique, unpredictable environments that are extremely difficult and cost-prohibitive to automate. Every home, every building, every job site is different. The variability that makes trades work challenging is exactly what protects it from robots and AI.
Many degree-required office jobs, by contrast, face moderate to high automation risk. Data entry, basic financial analysis, routine legal research, and administrative tasks are increasingly handled by AI tools. While high-skill knowledge work remains safe, the entry and mid-level positions that new graduates typically occupy are most vulnerable.
Return on Investment Analysis
Consider two hypothetical 18-year-olds making their career decisions today. One pursues a marketing degree; the other begins an electrical apprenticeship.
Cumulative Earnings and Net Worth by Age
| Age | Path A: College Graduate | Path B: Trades Worker | Gap (B − A) |
|---|---|---|---|
| 18 | $0 (starts school, takes on debt) | +$35,000 (apprentice year 1) | +$35,000 |
| 20 | −$40,000 (tuition debt accruing) | +$90,000 cumulative earnings | +$130,000 |
| 22 | −$80,000 debt; starts at $50K salary | +$180,000 earned; journeyman at $60K, zero debt | +$260,000 |
| 26 | ~$120,000 earned after loan payments ($800/mo) | ~$340,000 earned; potential master's license at $80K+ | +$220,000 |
| 30 | ~$280,000 cumulative (debt may be paid off) | ~$560,000 cumulative; 12 years of experience | +$280,000 |
By age 30, the trades worker has often earned $200,000 to $300,000 more than the college graduate, even if the graduate eventually catches up in annual salary. That early financial advantage, invested wisely, can translate to hundreds of thousands more in retirement savings due to compound growth.
Quality of Life Considerations
Salary and ROI are not the only factors. Here is an honest look at the quality-of-life trade-offs.
| Factor | Skilled Trades | Degree-Required Office Jobs |
|---|---|---|
| Physical Demands | High — long-term body care is essential | Low — sedentary (its own health risks) |
| Schedule Flexibility | Overtime common; hours can be unpredictable | More consistent; remote work options |
| Daily Variety | High — different sites, problems, environments | Lower — more routine but physically comfortable |
| Entrepreneurship Potential | Excellent — many electricians, plumbers, and HVAC technicians start their own businesses | More limited without significant capital |
| Long-Term Transition | Supervisory, inspection, or instructional roles | Management, consulting, or specialization |
The Hybrid Path
It is worth noting that this is not strictly an either-or decision. Many successful professionals combine elements of both paths:
- Learn a trade first, then pursue a degree part-time while working. Some employers even offer tuition assistance.
- Use a trade career to fund a degree debt-free, then transition into management or engineering roles that leverage both practical and academic knowledge.
- Construction managers often start in trades and add a degree or certifications later to move into leadership. This combines hands-on credibility with management skills.
The Bottom Line
A college degree remains valuable for careers that specifically require one: medicine, law, engineering, and academia, among others. But for the vast majority of people, a skilled trade offers a faster path to financial stability, lower risk, and comparable or better lifetime earnings when you account for debt avoidance and early career income.
The best career decision is an informed one. Use RankMyCareer to compare specific careers side by side — look at the salary data, growth projections, and automation risk scores for trades like electricians, plumbers, HVAC technicians, elevator installers, and welders. Run your own ROI calculation. The answer that is right for you depends on your individual circumstances, aptitudes, and goals — not on outdated conventional wisdom.