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DAC Worldwide

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News

Blue Collar v. White Collar and the Impact of AI

by Duane Bolin / Wednesday, 08 April 26 / Published in News
DAC Worldwide - Blue Collar v. White Collar and the Impact of AI

What would you do if you stumbled upon a fountain of youth? What three wishes would you make if you found a genie in a bottle? Would you seize the opportunity to return to your youth? For those of us with several decades of life under our belts, it’s tempting to think about returning to a simpler time.

If you could go back to a time before the Internet existed, would you do it? What if you could be 17 again, but only if you stayed in 2026? That might change things for many people. How about you?

Combine a new war in the Middle East with increasing inflation, skyrocketing prices on everything from food to gas, unaffordable healthcare premiums, and any number of other issues, and you find yourself in a present time that’s particularly bleak for the youth of America.

Today’s parents of teens know the struggle is real. What career advice do you give a teenager in a world full of uncertainty and an economy on the verge of a recession? With artificial intelligence (AI) growing by leaps and bounds, what kind of modern career still offers the “American dream”?

Should you push your children toward a university degree and a white-collar job? Or would they be better served by pursuing a blue-collar job in the trades after an apprenticeship, certification program, or technical training at a community college?

Recent news reports signal a trend that may put blue-collar careers on a more solid footing than white-collar counterparts in the age of AI. In a recent article in The New York Times, author Sydney Ember notes that “[t]his is the worst spring for young degree holders since the depths of the pandemic.”

Diving into the statistics, it’s clear that those finishing college soon face an uphill battle. Ember cites a Federal Reserve Bank of New York analysis that finds “[t]he unemployment rate for college graduates ages 22 to 27 soared to 5.6 percent at the end of last year…up sharply over the past three years and outstripping the overall rate of 4.2 percent at the time.”

Perhaps more importantly, of those who did have jobs, “more than 40 percent held jobs that do not typically require college degrees, the highest level since 2020.” While there are many factors at play in the current employment market, some are pointing the finger at the increasing prominence of AI.

For example, Anthropic CEO Dario Amodei has predicted that AI “could obliterate half of entry-level white-collar jobs within five years.” Is that realistic? Only time will tell. However, a Stanford Digital Economy Lab report recently found that there have been “‘substantial declines in employment for early-career workers’ in fields that were most vulnerable to A.I., such as software development.”

In stark contrast to the apparent effect of AI on white-collar jobs, author Caroline Colvin notes in a recent HR Dive article that “AI is spurring demand for skilled trade workers — not displacing them.” She cites a recent Randstad report that indicates that “[h]iring for skilled trades has increased to keep up with the rate of artificial intelligence infrastructure growth.”

For example, Colvin notes that “[s]ince late 2022 when generative AI entered the mainstream, demand for robotics technicians has spiked 107%, with demand for HVAC engineers up 67% and construction roles up 30%.”

Before jumping on the trades bandwagon, though, it’s important to realize that “AI-driven expansion is reshaping what it means to be a skilled trade worker.” It appears that the days of viewing blue-collar jobs as low skill are long gone.

Randstad’s report notes that new blue-collar jobs “are increasingly highly specialized, digital-first positions. From electricians to robot technicians, digital fluency is now a prerequisite. The skilled trades are moving closer to traditional knowledge work, requiring a global re-rating of these career tracks and a shift toward continuous education and training opportunities.”

So, what can educators and companies do to increase the number of highly skilled workers needed for today’s job market? Partnering with a proven expert to train current and prospective workers with the hands-on skills necessary to succeed on the job is a great place to start.

Partnering with a training solutions provider with a proven track record can help any manufacturer or educational institution train workers with the hands-on skills they’ll need to hit the ground running in the workplace. For example, DAC Worldwide offers a wide variety of training systems that teach basic to advanced skills in a wide variety of areas relevant to manufacturing. From basic electrical and mechanical to advanced process control and HVACR, DAC Worldwide offers training solutions that work. Visit DAC Worldwide online to learn more about its many training systems!

Tagged under: ai, artificial intelligence, blue collar

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