SAN FRANCISCO, CA — Thumbtack, a technology company helping millions of people care for their homes, released its third annual Future of the Skilled Trades Report, examining how AI, economic uncertainty and changing career expectations are influencing the skilled trades workforce.

More than 80% of Gen Z respondents surveyed said it has become harder for young people to build a stable career than it was just a few years ago, while four out of five believe AI will eliminate many traditional entry-level jobs. That uncertainty is already affecting career planning, with 92% saying they have made at least one change to their career strategy in response to the job market.

Against that backdrop, skilled trades are gaining attention as a career option. Nearly half of Gen Z respondents are learning or seriously considering a skilled trade, with 30% saying AI has made them more interested in the field. Three in four believe the trades may become one of the smartest career choices for their generation.

“As AI reshapes the workforce, America’s need for skilled labor is only becoming more urgent,” said Marco Zappacosta, Co-Founder and CEO of Thumbtack. “The opportunity isn’t to choose between technology and the trades, it’s to bring them together. AI can help skilled professionals become more productive, build stronger businesses and spend more time doing the work only they can do.”

Career Switchers Are Adding New Workers to the Trades

The shift isn't limited to Gen Z. Thumbtack's survey of skilled trades professionals also points to a workforce being reshaped by career switchers, technology adoption and strong demand.

Among professionals with less than two years in the industry, 38% previously worked in a corporate or white-collar career, while 26% entered the trades following burnout and a desire for a career reset.

The influx of career switchers suggests that skilled-trades businesses are drawing workers from outside traditional trade career paths. For contractors, that can expand the pool of potential employees while also creating a need for structured training and apprenticeship programs.

“There’s a lot of interest from young people who want to learn the trades,” says Deon Marecheau, owner of Antillean Restoration and Thumbtack Pro Advisor. “Bringing apprentices onto our team gives us a chance to develop talented people who can grow with our business or take those skills wherever their career leads.”

AI Adoption Is Growing Across the Skilled Trades

AI is also becoming part of day-to-day business operations for trades professionals. Thirty-five percent of professionals surveyed use AI regularly for their business, most often for marketing, customer communication and research.

Adoption extends across experience levels. Fifty-two percent of professionals with less than two years of experience use AI routinely, while more than a quarter of professionals with 20 or more years in the field also report regular use.

The data points to AI moving beyond an emerging technology for contractors and into practical business functions such as customer communications, marketing and research. Thumbtack's report frames the technology as a potential productivity tool rather than a replacement for the skilled work performed in the field.

Demand Remains Strong but Profitability Shapes Growth

Despite the growing interest in the trades, strong demand does not necessarily make it easier to operate a contracting business. Nearly three-quarters of professionals surveyed said they turned away work during the past year, most often because of project fit or profitability.

That selectivity reflects the business challenges contractors face when converting demand into sustainable growth. Competition, increasingly price-sensitive homeowners and administrative demands can all affect whether a contractor chooses to take on a project.

At the same time, nearly eight in 10 professionals said they would recommend the trades to a young person, while nearly half reported higher demand and income compared with a year ago.

The combination of strong demand and selective job acceptance highlights the difference between having available work and having work that makes business sense.

Local Markets Show Different Levels of Trade Demand

Thumbtack's marketplace data also shows that conditions vary by location. The report ranks metropolitan areas based on the strength and growth of professional supply and homeowner demand.

According to Thumbtack, its 10 markets best positioned for the future of skilled labor are:

1. Washington, D.C.
2. Charlotte
3. Atlanta
4. Raleigh-Durham
5. Baltimore
6. Chicago
7. West Palm Beach
8. Austin
9. Seattle
10. Dallas

The market data provides another indication that workforce and business opportunities are not uniform across the country. Local contractor supply, homeowner demand and market growth can influence the opportunities available to skilled-trades professionals.

Business Support Will Shape the Next Generation of Contractors

The report points to a broader challenge for the skilled trades: The country needs more skilled workers, but those workers also need the tools, technology and business support required to build sustainable careers.

As younger workers reconsider traditional career paths and experienced professionals adopt new technologies, trade businesses will increasingly have to manage both workforce development and business operations. For contractors, that means finding ways to bring new workers into the industry while using technology to improve productivity and manage the administrative side of the business.

As a new generation rethinks what career security looks like, the skilled trades are becoming an increasingly important part of the American workforce. Thumbtack says it is focused on helping professionals take advantage of that opportunity with tools designed to support sustainable businesses.

Download the full report at www.thumbtack.com/guide/content/2026-future-of-the-skilled-trades-report.