Why Gen Z Is Skipping College: The Rise of the Internet Economy

or decades, the conventional path to success followed a familiar formula: go to college, get a degree, land a job, and climb the corporate ladder to achieve financial security and a happy life.

However, for Generation Z, this formula doesn’t hold the same appeal.

A growing number of Gen Zers are forgoing traditional higher education and seeking out new opportunities in the internet economy, fundamentally reshaping how young people approach careers and financial freedom.

The Changing Landscape of Education and Work

A recent Deloitte survey highlighted this generational shift, revealing that nearly one-third of Gen Z and millennials have chosen to skip college altogether.

The reasons are multifaceted but often boil down to financial barriers, personal circumstances, and the rise of careers that don't require a college degree.

But more than just cost, Gen Z is questioning the value of the traditional education-to-job pipeline that sustained previous generations.

With burnout, low wages, and mountains of student debt making headlines, the appeal of spending years in school—only to start adult life under financial strain—has waned.

Instead, many are asking a different question: How can I make money online?

The Internet Economy: A New Frontier

The internet economy has revolutionized how people work and make money, offering opportunities that didn’t exist a few decades ago.

In 2022 alone, the internet economy added $2.6 trillion to the U.S. economy, and its growth is projected to continue at a rapid pace.

Digital goods, online marketplaces, and gig platforms have replaced traditional brick-and-mortar jobs as the primary sources of income for many.

For Gen Z, the dream isn’t necessarily to go to Harvard and work for a Big 4 firm anymore. The new aspiration is financial freedom, and the internet provides a clear path to that goal. - FastCompany

Platforms like YouTube, Instagram, TikTok, and countless freelance platforms offer new ways to earn money without the need for a college degree.

Many young people see the potential in content creation, entrepreneurship, and online gigs as more accessible and financially rewarding paths than the corporate grind.

The Rise of the Content Creator Economy

Perhaps the most striking example of this shift is the booming content creator economy.

With 27 million-plus content creators on social media platforms, more than half of Gen Z views becoming an influencer or creator as a reputable career choice.

Full-time content creators, on average, earn $179,000 annually, a salary that rivals many traditional careers—without the burden of student loans or entry-level wages.

This isn’t just about chasing fame; it’s about capitalizing on a rapidly growing economy that allows individuals

to build their own brands,

connect with millions of potential customers, and

monetize their talents.

The internet has made it possible to turn hobbies, passions, and creative ideas into lucrative careers—often with much lower barriers to entry than traditional industries.

For those considering jumping into the internet economy, Steven Schwartz, a successful online entrepreneur, offers some key advice:

1. Solve Your Own Problem

Many successful businesses start by solving a personal problem.

2. Take Shots on Net

You won’t get anywhere without taking action. Start building, even if you're unsure about every decision.

Fortunately, there are more resources than ever to help you at each stage of building an online business—from developing a web app to acquiring customers.

Not every decision will be the right one, but course-correcting as you go is part of the process.

3. Zoom Out to Zoom In

The internet is vast, and if your first idea doesn’t immediately pan out, don’t be discouraged.

Step back and look at adjacent opportunities that may still align with your goals.

The flexibility and scalability of online businesses allow you to pivot quickly and capitalize on new markets as they emerge.

The Future of Work: What This Shift Means for the Economy

The move away from traditional education and career paths is more than just a trend; it’s a significant inflection point that will shape the future of work.

As Gen Z continues to opt for financial freedom over the stability of a 9-to-5 job, the workforce will see a rise in independent contractors, creators, and entrepreneurs.

This shift may lead to the decentralization of traditional industries and the rise of new business models built on the backbone of the internet.

Moreover, the internet economy isn't just for content creators; it's influencing nearly every sector.

From software development and digital marketing to virtual assistants and e-commerce, the opportunities to build a career online are expanding, providing Gen Z with a range of non-traditional career options that don’t involve a college degree.

The Path Forward for Gen Z

The days of following a linear path from college to career are fading.

Gen Z is at the forefront of a movement that’s embracing the internet economy as a more viable and flexible way to achieve financial success and personal fulfillment.

By skipping college and diving straight into the online world, they are redefining what it means to build a career in the modern age.

And while this approach isn’t for everyone, it’s clear that the traditional models of work and education are no longer the only paths to a successful future.