Pursuing a Trade or College: Which Path Leads to Higher Earnings?

When it comes to choosing between pursuing a college degree and entering a trade, one often wonders which option will provide greater earning potential over time. While this decision can be complex, it is important to consider the average salaries and career trajectories of both paths. While college can lead to higher earnings in certain fields, it is not a one-size-fits-all solution. Let's explore the factors that influence the earning potential for each path.

Credentials and Earnings Potential: Comparing College and Trades

In general, college degrees can lead to higher earning potential when compared to entry-level trades. However, this does not mean that pursuing a trade is not a viable option. The key is to consider the specific field and the average earnings within that field.

For non-STEM majors, the average salary is higher than that of many trades. According to data from the Bureau of Labor Statistics, even the worst-paying non-STEM majors typically have a median salary that surpasses the earnings of many trades. For example, a degree in Art Appreciation may not be the highest earner, but there are degrees in disciplines such as engineering that lead to significantly higher salaries.

For STEM majors, the earning potential can be even more substantial. According to data from MIT, graduates in Electrical Engineering and Computer Science (EECS) can expect a starting salary around $120,000 and salaries of $350,000 mid-career. These figures illustrate the significant earning potential associated with a college degree, particularly in STEM fields.

Specific Examples of Trades and College Degrees

When comparing trades and college degrees, it is crucial to consider the specific field of trade or the college degree. For instance, a welder can expect an annual salary of around $37,000, while a teacher can earn approximately $59,000 per year. However, these figures can vary based on location and experience.

There are also numerous resources available for individuals to research and tailor their career choices to their specific needs. Websites like Weld My World and Salary Expert provide detailed salary information for various trades and professions.

It is important to remember that the earning potential is not solely dependent on the degree or trade but also on the quality of the job obtained and the individual's work ethic and ability. Many individuals with PhDs and higher degrees are still able to find adequate employment, while some people with no formal education have established themselves as multi-millionaires.

The Future Perspective: Skills and Technology

Predicting the future job market is challenging. While certain trades such as plumbing may be highly lucrative, others like farrier or knitter may not have a significant demand. As technology advances, certain trades in the future may be overtaken by automation, and new trades may emerge.

For college graduates, a four-year degree is generally expected to lead to higher earnings, especially when compared to those who only pursue a trade. However, if a person is in the middle or bottom of their class and lacks the technical skills required for certain trades, the situation may be different.

Given the rapidly changing nature of the job market, it is essential to continuously update one's skills and stay informed about emerging trends. By doing so, individuals can better position themselves for success in a constantly evolving job market.