Are high-paying blue-collar careers the solution to the trillion-dollar labor shortage?

Did you know the global economy faces a staggering $8.5 trillion loss in unrealized annual revenues by 2030 due to a severe labor shortage? This eye-opening prediction comes from Korn Ferry, an organizational consulting firm, which estimates that developed economies will be short of 85 million workers within the next decade.

The impact of this shortage is particularly acute for blue-collar workers, who are at the forefront of this crisis. For example, the 2018 Deloitte & The Manufacturing Institute report paints a bleak picture, projecting as many as 2.4 million unfilled manufacturing jobs in the United States between 2018 and 2028, resulting in a staggering $454 billion negative economic impact.

Let’s review blue-collar jobs and labor market trends, including the remarkable growth in demand for fields like carpentry and stone masonry and the implications for the broader labor market. We’ll also describe the potential economic consequences and the promising opportunities that high-paying blue-collar jobs offer in addressing this critical issue. More on that below.

The term “blue-collar” originated in the early 20th century, when workers in physically demanding roles often wore sturdy, blue-colored fabrics like denim or chambray. This choice of clothing served a practical purpose, as the dark color helped conceal the dirt and grease inherent to their jobs.

These non-office workers are typically engaged in physically demanding tasks that often require them to work outdoors in challenging weather conditions. They operate heavy machinery and rely on their physical strength and manual skills to perform their duties.

Interestingly, the hospitality industry has largely missed the challenges faced by blue-collar workers, and we can draw a parallel to the aviation industry as an example. The aviation sector has undergone significant workforce reductions in response to the COVID-19 pandemic. According to Oxford Economics, this industry has shed over 2.3 million jobs since 2019, representing a 21% decrease from pre-pandemic levels. However, these staff reductions have left the aviation industry grappling with recruitment and retention issues, with some employees resorting to strikes to advocate for improved working conditions.

The industry grapples with a significant skilled worker shortage, affecting guest experiences. Factors include:

• Challenging working conditions
• Poor employee motivation due to low pay and limited opportunities
• A lack of social dialogue.

Additionally, sustainability pressures are mounting, driven by stakeholder demands, rising energy costs, and changing guest attitudes. Challenges include securing stakeholder commitment, addressing food waste, and developing a motivated, sustainable workforce. These issues are central to the industry’s future success and role in a sustainable world.

Based on the monthly labor market insights from HRForecast, the situation with blue-collar jobs can be characterized as follows:

• The demand for specialized engineers, including project, electrician, and data engineers, has been growing, replacing positions such as pharmacist, marketer, and manager.
• The demand for maintenance technicians has risen globally, particularly in the heating industry, with a focus on heat pumps.
• Among the most demanded job titles in tourism are cashier, bartender, marketing manager, concierge, sales manager, barista, chef, administrative assistant, receptionist, travel consultant, and hostess.

Overall, the labor market is experiencing shifts in demand for various job titles, with a notable increase in climate change-related roles and continued demand for blue-collar positions like maintenance technicians, particularly in the heating industry. Interpersonal and management roles also remain prevalent in the current labor market.

The post-pandemic era has brought about notable shifts in the economic and educational landscape, particularly in employment earnings. It’s becoming increasingly evident that workers in fields traditionally associated with lower salaries have made significant gains during this period, reshaping the perception of blue-collar jobs compared to traditional white-collar roles.

The Wall Street Journal shared some insights from the report of the Labor Department. The statistics highlighted insights from January 2021 through March 2023. The average hourly earnings for blue-collar workers surged by an impressive 21.9%, showcasing substantial growth.

In contrast, while still experiencing gains, white-collar professionals witnessed more modest increases.

However, it is essential to note that despite these wage gains, most workers still faced challenges due to surging inflation. Consumer prices surged by almost 15% between January 2021 and February 2023, according to the latest figures from the Labor Department. These inflationary pressures have impacted workers across the board, underscoring the importance of understanding various job sectors’ economic dynamics and implications.

While many blue-collar workers enjoy substantial earnings without the burden of high tuition debt, they typically belong to the “working class” and receive compensation based on hourly rates or job assignments, unlike salaried office workers. Many of these individuals undergo training, apprenticeships, or formal education to master their trades and often benefit from unionization, which offers job security, competitive pay, and attractive benefits.

The most sought-after blue-collar occupations are often skilled trades that demand technical expertise and training without needing a four-year degree. Yet, they boast the potential to earn six-figure incomes. These roles are characterized by high demand and promising prospects for future growth.

For example, in 2017, an employee of the city’s Department of Environmental Protection earned a staggering $539,098. The city confirmed Friday that Bhavesh Patel, a stationary equipment engineer, worked 1,992 overtime hours on top of his 2,086 regular hours.

We have gathered data from various sources, including Indeed, Salary.com, the Bureau of Labor Statistics, and HRForecast smartHire feature to provide insights into the average salary levels for these top blue-collar jobs in the United States and some European countries.

• Median salary. The national average salary for a firefighter varies from $48,800 (for firefighters) to $63,080/year (for fire inspectors).
• Education requirements. High school diploma or GED (General Educational Development program), minimum age of 18, good physical condition, and EMT (Emergency Medical Technicians) certification in some cases.
• Duties. Extinguish fires and perform rescues in various settings, including forests, homes, and vehicles for firefighters. Conduct inspections to ensure compliance with fire safety codes, identify hazards, evaluate fire protection systems, review emergency plans, and educate the public on fire safety measures for fire inspectors.

• Median salary. $58,431/year.
• Education requirements. Typically, a high school diploma or GED is the minimum educational requirement. Some employers may accept candidates without formal apprenticeship but require on-the-job training.
• Duties. Structural iron and steel workers are responsible for laying out and fabricating steel and sheet metal for various construction projects like buildings, dams, bridges, towers, fences, storage tanks, and highway guardrails. They are also responsible for assembling and installing structural components, including steel or iron columns, beams, and girders, utilizing techniques such as riveting, welding, and related construction methods.

• Median salary. Approximately $80,000/year.
• Education requirements. Class A commercial driver’s license (CDL) and a clean driving record.
• Duties. Responsible for driving a tractor-trailer and transporting various goods, equipment, or chemicals over long distances. Requires strong organizational skills for tracking mileage and hours traveled.

• Median salary. Entry-level salaries are around $50,000/year, with the potential for higher earnings.
• Education requirements. While some employers prefer petroleum engineering or geology candidates, many oil workers enter the field with just a high school diploma or GED.
• Duties. Engage in one of the most hazardous yet highest-paying manual labor occupations, involving exposure to diverse weather conditions and 10 to 12-hour workdays. Oil workers operate in remote and offshore locations, often requiring extended periods away from home. Specialized skills, such as underground pipe fitting and drilling expertise, can lead to salaries reaching as high as $200,000.

• Median salary. $60,040/year.
• Education requirements. To become an electrician, you typically need a high school diploma or equivalent, complete an apprenticeship program that combines on-the-job training and classroom instruction, and obtain the required license, which may involve passing an exam and meeting specific training hours, depending on your location.
• Duties. Install, repair, and maintain electrical systems in residential, commercial, and industrial settings. It is one of the fastest-growing blue-collar jobs, with a predicted 50,200 job openings between 2021 and 2031. Additionally, it is considered one of the top part-time retirement jobs that offer competitive pay.

• Median salary. Ranges from $48,090 to $111,470/year, depending on experience and seniority.
• Education requirements. It requires rigorous on-site training provided by employers, with no specific formal educational requirement.
• Duties. Responsible for regulating and maintaining power generation equipment, monitoring electricity flow and voltage, and ensuring the efficient operation of power plants, which can use various fuel sources, including natural gas, coal, or nuclear reactors.

• Median salary. Averages $162,971/year, with the potential for significant increases.
• Education requirements. Typically require specialized training and certification in nuclear power operations, often acquired through employer-sponsored programs or vocational schools.
• Duties. Responsible for regulating energy flow, overseeing cooling systems, implementing safety protocols, monitoring data for decision-making, and troubleshooting equipment issues in nuclear power plants. This role carries significant responsibility and is one of the highest-paying and desirable blue-collar jobs, with some operators earning as much as $796,000 annually.

• Median salary. Approximately $70,000/year.
• Education required. Typically, it requires an associate’s or bachelor’s degree.
• Duties. Responsible for maintaining and repairing aircraft, including mechanical systems, radio, radar, communications, and digital technology. This specialized skill is typically acquired through training at a trade school. The job is in high demand, with a projected 11% growth by 2030.

• Median salary. $48,290/year.
• Education requirements. Typically require on-the-job training or completion of a vocational program.
• Duties. Oversee the management, maintenance, and allocation of construction equipment on job sites, ensuring proper working conditions and efficient equipment usage. This role supports construction operations by maintaining records of equipment usage and maintenance. It is also known as one of the happiest blue-collar jobs.

• Median salary. $47,670 per year.
• Education requirements. Typically, this blue-collar job requires a high school diploma and may benefit from vocational training, although on-the-job training is also available.
• Duties. Responsible for assembling, installing, setting up, and maintaining solar systems, usually on rooftops or other locations, to convert sunlight into energy. This role is in high demand and is one of the fastest-growing blue-collar jobs.

Blue-collar jobs can be remote. These jobs have become an increasingly viable option across various industries, thanks to technological advancements and lessons learned during the COVID-19 pandemic. Here are some examples of remote blue-collar jobs:

• Desk receptionists. They can handle their responsibilities remotely using video conferencing tools like Zoom.
• Remote drive-thru workers. For example, Baby Jack’s restaurant chain has implemented remote drive-thru workers. These employees can remotely manage orders, payments, and customer interactions, improving efficiency and customer service.
• Remote gig workers. Companies like Bite Ninja, which serves multiple fast-food chains across several states, employ remote gig workers. This arrangement offers flexible job opportunities for various demographics, including stay-at-home mothers, disabled individuals, and college students.
• Customer support representatives. Many blue-collar industries have integrated remote customer support roles. Customer support representatives can assist customers with inquiries, troubleshooting, and technical issues through phone or online chat from remote locations, ensuring uninterrupted service.
• Field service technicians. While not entirely remote, field service technicians in various industries, such as utilities or telecommunications, can utilize mobile technology and remote diagnostics to troubleshoot and repair equipment more efficiently, reducing the need for constant on-site presence.
• Quality control and inspectors. Some quality control and inspection roles can be conducted remotely, especially using digital inspection tools and cameras. Inspectors can review and analyze data and images remotely to ensure product or service quality.