Share this @internewscast.com

Many blue-collar workers are riding into 2024 on a year’s worth of stronger hiring, more plentiful job opportunities and faster pay growth than some of their white-collar counterparts.

After two years of rapid growth, the United States’ job market is finally slowing down as 2023 draws to a close, but Americans broadly continue to benefit from its strengths. Unemployment clocked in at 3.7% last month, the 22nd straight month when the jobless rate has held below 4%.

People also appear to be working or looking for jobs at higher levels than before the pandemic, with 83.3% of those between the prime ages of 25 to 54 participating in the labor force.

But with job gains slowing from an average of 399,000 a month over the course of last year to 232,000 so far this year, workers’ historic surge in bargaining power during the post-pandemic rebound is now on the wane. A top culprit: higher interest rates from the Federal Reserve meant to quell inflation, which peaked in summer 2022 above 9% and is now hovering around 3%.

Many white-collar employers have cut down on hiring this year. The tech sector has seen some of the sharpest pullback — and deepest layoffs — after correcting for a pandemic-era glut and adapting to higher interest rates that have made corporate borrowing costs much higher.

For jobs in software development and IT operations, Indeed data shows there are fewer postings now than there were before the pandemic. Job postings for manufacturing roles, however, are up a whopping 46%.

It’s been a much starker pullback in white-collar, traditional office jobs.

Nick Bunker, Director of economic research at the Indeed Hiring Lab

“It’s been a much starker pullback in white-collar, traditional office jobs,” said Indeed Hiring Lab Director of Economic Research Nick Bunker.

The divide also shows up in job postings by work arrangements, where work-from-home roles tend to be concentrated in white-collar jobs compared to more hands-on blue-collar work. Indeed data shows fewer job postings now than pre-pandemic for highly remote jobs, whereas those for more in-person roles remain above pre-pandemic levels.

In another sign of the blue-collar workforce’s comparative strength, people with the least education have seen some of the steepest growth in employment levels. Those without a high school degree saw a 5.7% jump this year, well above the national average of 1.1% employment growth.

Their rebound makes up some of the shortfall suffered during the pandemic, when workers who didn’t graduate high school saw some of the worst job losses. Bachelor’s degree holders maintain their long-running edge in employment levels despite slower recent gains.

Overall, workers are making more than they did a year ago.

Largely blue-collar fields like manufacturing have seen faster average hourly earnings growth in 2023 than many primarily white-collar categories like business and professional services. And many blue-collar workers’ pay gains continue to outpace inflation — which hasn’t been the case for some white-collar professionals this year.

In the mining and logging sector, for example, wages grew by 4.2% over 2023. Pay for information-based roles has risen by only 2.3% this year.

Of course, many blue-collar jobs are lower paid than white-collar ones, so faster wage gains may not narrow the earnings gap substantially between the two groups. What’s more, lower earners typically have less savings to endure rising prices than do higher earners, meaning the economic picture likely remains more difficult for blue-collar workers — even those landing raises and promotions.

Still, Bunker says labor market trends remain largely positive for lower-earning households heading into next year.

“Wage inequality has come down over the past few years because that bottom distribution has done relatively well,” he said.

Share this @internewscast.com
You May Also Like
Alaskan climbing star dies in fall from Yosemite's El Capitan

Renowned Alaskan Climber Tragically Falls to His Death from Yosemite’s El Capitan

A renowned climber from Alaska tragically lost his life after falling from…
Woman caught on camera allegedly lunging at MAGA activist in viral confrontation

Video Allegedly Shows Woman Confronting MAGA Supporter in Viral Altercation

A physical confrontation at Washington, D.C.’s Union Station went viral after conservative…
Hispanic Heritage Month: Chicago fire station transformed into Yollocalli art museum in Little Village

Hispanic Heritage Month: Chicago Fire Station Converted into Yollocalli Art Museum in Little Village

CHICAGO (WLS) — A former fire station in Chicago has been transformed…
Trial day 2 explores evidence in Prince Holland case

Second Day of Hearings Delves into Prince Holland Case Evidence

Jurors were shown of crime scene photos, walked through bullet-ridden evidence and…
State-of-the-art technology restores classic film 'The Sound of Music' to its clear, bright, colorful glory 60 years after release

Cutting-edge technology revives ‘The Sound of Music,’ enhancing its clarity, brightness, and color 60 years post-release

BURBANK, Calif — To celebrate “The Sound of Music” on its 60th…
Israel claims Greta Thunberg's flotilla seeking to break Gaza blockade has Hamas ties, cites documents

Israel Alleges Greta Thunberg’s Flotilla Attempting to Break Gaza Blockade is Linked to Hamas, According to Documents

Israel says it has proof linking Hamas to the Global Sumud Flotilla…
Lydia Kaiser returns to school after Annunciation shooting

Lydia Kaiser Resumes School After Shooting Incident at Annunciation

Lydia Kaiser, 12, was shot while trying to protect a younger student.…
Texas megachurch founder Robert Morris pleads guilty to child sex abuse charges

Texas Megachurch Leader Robert Morris Admits to Child Sexual Abuse Offenses

The founder of a Texas megachurch, who stepped down last year following…
JSO: Man shot during argument with suspect on Moncrief Road

JSO: Argument on Moncrief Road Leads to Shooting

The Jacksonville Sheriff’s Office said the man suffered a non-life-threatening injury after…
Prince William gives rare Kate Middleton cancer update in vulnerable talk with Eugene Levy

Prince William Shares Heartfelt Update on Kate Middleton’s Cancer Journey in Candid Conversation with Eugene Levy

Prince William provides a rare update on his wife, Kate Middleton, after…
OpenAI now worth $500 billion, possibly making it the world's most valuable startup

OpenAI Valued at $500 Billion, Potentially the World’s Most Valuable Startup

OpenAI may now hold the title of the world’s most valuable startup,…
President Donald Trump pauses $2.1B for Chicago infrastructure projects, leveraging shutdown to pressure Democrats

Trump Halts $2.1 Billion for Chicago Infrastructure, Using Shutdown to Sway Democrats

CHICAGO — White House budget director Russ Vought announced that the Trump…