The job market in the U.S. has remained relatively stagnant over the past few months, as the economic impacts of the pandemic linger beyond what experts initially anticipated. But amidst this uncertainty and economic strain, blue-collar hiring and pay gains have remained hot.
In the most recent economic report released by the Bureau of Labor Statistics, job gains in the blue-collar sector were among the most substantial. For instance, leisure and hospitality employment rose by 111,000, while construction gained 87,000 jobs and transportation and warehousing increased by 21,000.
The surge in hiring has also been accompanied by rising wages in the blue-collar sector, with an average of 6.9 percent over the past year. This is a larger increase than that seen in the white-collar sector, which has only seen a 5.5 percent average increase.
Experts suggest that this trend is due to the fact that many of these positions are deemed critical for the continuation of the economy, and employers need to fill these openings in order to stay afloat. In addition, many employers have been willing to pay more for hazardous and physically demanding positions, since people may be hesitant to take them on given the current circumstances.
The rising wages and job gains have been somewhat unexpected in a cooling job market. This has given some people new hope that they can gain employment in this tumultuous climate and potentially earn more money than before the pandemic.
Despite the surge in blue-collar hiring and pay gains, experts warn that this trend may not last due to how unclear the future of the job market is. With the possibility of more economic impacts due to the pandemic, employers are likely to become more cautious when paying for labor.
Still, blue-collar hiring and pay gains have been exceptionally strong throughout 2020. This could potentially be a bright spot in an otherwise difficult job market and provide more people with a better opportunity to earn more money and gain employment.