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White-collar tech roles have faced waves of layoffs in recent months, as companies like Amazon, Meta and Oracle trim headcounts in the name of efficiency. But the same firms culling workers are running into a roadblock with their AI ambitions: a severe shortage of skilled workers needed to build and maintain data centers. And the talent shortfall is in the hundreds of thousands.\u00a0<\/p>\n
Demand for robotics technicians has jumped 107%, HVAC engineers increased 67%, and construction roles grew by 30% since late 2022, according to an analysis of more than 50 million job postings by Randstad. Roles like welders and electricians are also on the rise, up 25% and 18% over the past three years, respectively.<\/p>\n
But supply has yet to keep up. In the manufacturing space in particular, for every 100 young people entering the manufacturing sector, 102 leave, according to the report. Randstad CEO Sander van\u2019t Noordende said the imbalance is creating a major opening for Gen Z workers to step into lucrative, AI-resilient careers.<\/p>\n
\u201cFor a long period, societies generally pushed a narrative that the ultimate marker of success is a four-year university degree and a desk job,\u201d Noordende told Fortune in an emailed statement. \u201cThis outdated perception led to skilled trade work becoming overlooked. However, AI is now revealing just how critical these roles are and how elevated they are becoming.\u201d<\/p>\n
Unlike many white-collar paths, these roles often don\u2019t require a four-year degree. Instead, workers can enter through apprenticeships and training programs that allow them to earn while they learn\u2014offering a faster, and often cheaper, route into the workforce than going to college.<\/p>\n
Some trade workers\u2019 salaries are soaring past $250,000 thanks to the AI data center boom<\/p>\n
The lack of supply of skilled workers to build America\u2019s rapidly growing AI infrastructure is actually pushing blue-collar wages to new highs.<\/p>\n
Construction workers on data center projects currently\u00a0 earn an average of about $81,800 annually, or $39.33 an hour\u2014roughly 32% more than those on non-data center builds\u2014according to data from Skillit, an AI-powered hiring platform for construction workers.<\/p>\n
\u201cBecause of the huge demand and the nature of this construction work, which is fueling the arms race of AI\u2026 the budgets are not as tight,\u201d Skillit CEO Fraser Patterson told Fortune last year. \u201cI would say they\u2019re a little more frothy.\u201d<\/p>\n
Industry leaders indicate the trend is only accelerating. Nvidia CEO Jensen Huang called the AI boom \u201cthe largest infrastructure build-out in human history that\u2019s going to create a lot of jobs\u201d for professions like plumbers, electricians, and steel workers. At the World Economic Forum in Davos earlier this year, he also added that salaries are climbing into the six figures.<\/p>\n
Electricians, in particular, are emerging as one of the most-in-demand, and best-paid,\u00a0 jobs on the market. Electrical work accounts for an estimated 45% to 70% of total data center construction costs, according to the International Brotherhood of Electrical Workers. The U.S. will need roughly 300,000 new electricians over the next decade, in addition to replacing the 200,000 expected to retire.<\/p>\n
In some cases, the pay is already reaching eye-popping levels. TV star Mike Rowe, known for his stint hosting Dirty Jobs, recently said he met three electricians under the age of 30 making between $240,000 and $280,000 per year at a data center in Plano, Texas.\u00a0 They each had no college debt, and companies are regularly trying to poach them.<\/p>\n
The skilled trade trade-off: high pay, but demanding work<\/p>\n
For all the upsides, careers in the skilled trades also come with clear drawbacks.<\/p>\n
The work is often physically demanding, requiring long hours on your feet in unpredictable environments. One day might mean working indoors with air conditioning; the next could involve pulling cable through mud or working in extreme heat or cold.<\/p>\n
Hours can also be inconsistent. Because many roles are tied to large-scale construction projects, workers may face intense schedules as deadlines approach\u2014followed by gaps between jobs or the need to relocate to wherever the next project is underway.\u00a0<\/p>\n
There are also long-term uncertainties. Some business leaders, including Elon Musk, have suggested that advances in robotics could eventually automate aspects of skilled trade work\u2014though that shift, if it comes, is likely years away.<\/p>\n
Still, for many young workers, the trade-offs are worth it. For Gen Zer Jacob Palmer, skipping college in favor of an electrician apprenticeship quickly paid off. By 21, he launched his own business, grossing nearly $90,000 in 2024 and surpassing six figures the following year. Unlike many of his peers burdened by student debt and an uncertain job market, he told Fortune simply: \u201cI don\u2019t owe anybody anything.\u201d<\/p>\n
#boom #fueling #demand #skilled #tradesand #demand #technicians #HVAC #workers #electricians #soaring #sixfigure #salaries #match<\/p>\n","protected":false},"excerpt":{"rendered":"
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