Artificial intelligence is certainly the current frontier of technology. A global survey conducted by McKinsey & Company suggests that 88% of companies use AI in at least one business function. LinkedIn’s job market report (link allows you to download a PDF to your device) also indicates that there are 1.3 million technology experts working in AI engineering or similar roles. But this is a very AI-driven view of the overall job market. The bigger picture shows that AI is actually moving jobs from the tech sector to the trades.
Specialized workers have seen their wages increase by as much as 30% in the United States and are on equal financial footing with many traditional office jobs. In fact, the demand for blue-collar workers is greater than the workforce can provide. A projection from Associated Builders and Contractors says the construction industry needs to attract nearly 350,000 workers to address the current shortage.
The AI economy requires robust physical infrastructure, and blue-collar workers are the only ones who can build it. Additionally, it’s blue-collar workers who see AI improving their work rather than replacing it. A report from the Top Employers Institute (link allows you to download a PDF to your device) shows that up to 80% of blue-collar workers believe AI will benefit their respective industries. They don’t seem to view AI as a threat, probably because they are in careers that are AI-proofed.
Why white-collar jobs are disappearing in favor of AI
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Despite the promise of a better future thanks to AI, reports show that AI is responsible for up to 16,000 job losses in the United States per month. Historically, many of these layoffs have been attributed to AI. The most striking example of recent events is the layoff of 8,000 employees at Meta as part of the company’s “AI-driven” transformation.
White-collar workers are the ones we most easily imagine creating and using AI on a daily basis. So why are white-collar roles being lost to AI? Statistics shared by National University indicate that “23.5% of US companies have replaced employees with ChatGPT or similar AI tools,” while 40% of companies expect to further reduce their workforce once AI is able to automate tasks.
Artificial intelligence operates in the digital space – the same space in which most office workers also conduct their business. This is why its white-collar replacement potential is so high. But as Sander van ‘t Noordende, CEO of Randstad, said in an interview with CNBC, “AI cannot build its own data centers.” Not long ago, we wondered whether artificial intelligence could become essential to job security. Today, the answer becomes clear: blue-collar workers could be the only ones to benefit from any job security.