Written by Hina Champaneri
The onset of the pandemic last March ensued an increasing unemployment rate due to businesses shutting down. The government had to send stimulus checks to millions of Americans and unemployment aid so that people could afford the necessities. A year later, while not completely back to pre-COVID levels, the economy has bounced back. The unemployment rate continues to drop as restrictions on businesses are lifted throughout the country. The opening of businesses has brought back the jobs that people lost last year. However, the changes from the past year have also increased the amount of blue-collar job postings because of the new demands that have come about. As opposed to white-collar jobs which are usually conducted in the office, blue collar work is in industries such as manufacturing, warehousing, and construction.
Prior to the pandemic, the demand for blue-collar jobs was not that high even though it is essential work. White-collar jobs have long been a symbol of prestige and class and this has been the mindset for decades. Though in general white-collar jobs have higher salaries, this is not to say that all blue-collar jobs have low wages and with the shift in job markets, blue-collar work has seen increasing pay. Since most people have faced unemployment as a result of the pandemic, the limited choices in the labor force leave people to apply for and accept positions that under any other circumstances they would not have. For example, Trenton Williams lost his job early last year, but then earned a forklift certificate which allowed him to work at a warehouse where he is making more than he ever has. Also, due to the demand, he had the opportunity to work overtime during the holiday season.
One of the great contributing factors to the increase in the construction industry is that the conditions in the housing market have created an opportune moment to buy a house. Millennials are in the primetime to buy homes right now and since the Federal Reserve drastically reduced short-term interest rates in 2020, it is much easier for people to take on loans. These rates are expected to remain low and millennials are bound to take advantage of them. With an increase in home purchases, people will want to renovate and upgrade their homes creating a strong demand for blue-collar jobs in the construction industry. Apart from new home purchases, with the increased amount of time that people have been spending at home, there is a new incentive to work on home projects that have been pushed aside in the past. The construction industry is expected to grow at a rate of 5% over the next ten years further increasing blue-collar jobs in the long run. Also, current homeowners have seen the value of their homes increase which therefore increases their home equity. This is another incentive to remodel their homes and data shows that kitchen and bath remodeling has increased 40% (Olick 2020).
Another factor leading to blue-collar job growth is that since people choose to stay at home and that most stores remain closed, people have turned to online shopping. The convenience that online shopping offers with quick shipping and the comfort of being in your own home is one that people will continue to utilize long after the pandemic. While most businesses experienced loss in 2020, Amazon’s revenue in the third quarter was up by thirty seven percent (Kohan 2020). People took advantage of Amazon Prime’s services and in turn, created more demand for workers. Since most people say that they will continue to shop online even once the world returns to a normal state, the increase for transportation and distribution workers will likely remain the same meaning that workers new to blue-collar jobs will not have to fear unemployment.
The change in the way that goods are distributed also contributes to how the labor market for the warehousing industry has had to adjust. Rather than sending packages to a store from a manufacturing plant, home deliveries require more drivers in various areas of the country (Cambon 2021). There used to be an option for customers to order online and then pick up their package in store. Now with packages being delivered directly to the customer, warehouses need to hire more workers to keep up with the demand.
While it seems that blue-collar workers would suffer as a result of the pandemic because of the shift to working from home, the demands that COVID-19 has created show that these jobs are necessary for a vital economy. Also, due to the high demand for blue collar jobs, people entering these industries have found that the pay and benefits are better than their previous positions (Kelley 2021). Overall growth in this sector is not expected to decrease anytime soon because people have changed their overall consumer habits due to the pandemic. In addition, as the peak of the home-buying season approaches, home renovations will continue to happen throughout the year. While the pandemic has brought about a lot of changes in people’s lives, there have been upsides to some and the boost in the blue-collar labor market is proof of that.
References
Nieves, Alicia. “Blue-Collar Jobs May Help Millions of Unemployed Americans Get Back to Work.” KMGH, KMGH, 3 Mar. 2021.
Lahart, Justin. “Better Job Market Not Nearly Good Enough for the Fed.” The Wall Street Journal, Dow Jones & Company, 5 Mar. 2021.
Cambon, Sarah Chaney. “Blue-Collar Jobs Boom as Covid-19 Boosts Housing, E-Commerce Demand.” The Wall Street Journal, Dow Jones & Company, 23 Feb. 2021.
Kohan, Shelley E. “Amazon’s Revenue Climbs 37% In Knockout Quarter As Online Spending Shifts Online.” Forbes, Forbes Magazine, 29 Oct. 2020.
Kelley, Alexandra. “Many People Who Lost Their Jobs during the COVID-19 Pandemic Have Found New, Higher-Paying Positions.” TheHill, 8 Feb. 2021.
Diana, Olick. “Pandemic Home Remodeling Is Booming: Here’s What Your Neighbors Are Doing.” CNBC, CNBC, 7 Aug. 2020.