I do a lot of environmental conservation work with young folks and their experience/familiarity with manual labor is still all over the place, but there's been a clear trend of that skillset declining in favor of other skillsets like digital media or whatever else. Varies a lot depending on if they grew up urban/suburbs/rural and their class. They're usually very receptive to the idea that there's a correct form or technique or particular tool which can make teaching easier, but they don't have the foundational knowledge or muscle memory so there's a lot of hammers locating fingers and such as they get up to speed.The other thing is, young people don't grow up with any mechanical skills, or at least very few that I've encountered. Don't know a Phillips head from a soldering iron, literally. Not trying to be judgemental, they just don't have any experience. I worked with youth sailors teaching basic repairs and maintenance, to the point we could do so with limited time and no exposure to toxic chemical.
I think it's lack of confidence in these tasks holding them back as much as anything.
Looking at my own community, a lot of people contract out basic manual labor jobs. They don't do their own landscaping, so they don't do small engine repair. They hire a handyman for the most basic of home improvement projects. They pay someone to deal with the snow. If something breaks just order a new one with same day delivery.
The lack of confidence is a huge issue. Taking the perspective of "I don't know, let's figure it out together" goes a long way to supporting growth, but you're often starting from a very very basic level. There's a real fear of being "wrong" or getting "in trouble" that's just misplaced.