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AI threatens white-collar work, calling for overhaul of vocational education

Published: 10 Apr. 2026, 00:03

Kwon Soon-won

The author is the dean of the Graduate School of Business at Sookmyung Women’s University.

In the industrialized 20th century, workers were broadly divided into white-collar and blue-collar categories. The term “white collar,” first used by American writer Upton Sinclair, referred to clerical and managerial employees. “Blue collar,” which appeared in a 1924 Iowa newspaper, described manual laborers such as factory workers and construction technicians wearing blue uniforms.

Construction workers leave the Phase 4 site at Samsung Electronics’ Pyeongtaek Campus in Pyeongtaek, Gyeonggi, after finishing their shift around 7 p.m. on Feb. 24. [YONHAP]

This distinction reflected more than clothing. It carried a social hierarchy. White-collar workers, typically college-educated and office-based, became synonymous with the middle class. Blue-collar workers, associated with physically demanding jobs, were seen as lower-income earners in harsher environments. In Korea, where educational attainment strongly shapes social status, this divide became more entrenched. Families often devoted significant resources to ensure their children entered white-collar professions. Although the growth of knowledge industries and manufacturing automation blurred the boundary, the perception gap persisted.

Recently, however, blue-collar jobs have been re-evaluated in the global economy. Skilled trades are expanding in advanced economies such as the United States and Germany, and wages are rising quickly. The Economist described this trend as a “blue-collar bonanza” in 2023. In the United States, real hourly wages for the lowest-paid 10 percent of workers rose 15.3 percent between 2019 and 2024, narrowing the long-standing wage gap. During the same period, wages for middle-income workers and the top 10 percent increased by only 5.8 percent and 6.9 percent, respectively, according to the Economic Policy Institute.

Manufacturing wages have also grown faster than those in office and professional roles. A USA Today report showed that blue-collar wages rose 10 percent over three years, compared with 7.5 percent for white-collar workers. As a result, incomes in construction, transportation and logistics have improved, in some cases surpassing those of traditional white-collar jobs. According to payroll firm ADP, new hires in construction earned a median salary of $48,089 in late 2023, up 5.1 percent from a year earlier, while new hires in professional services earned $39,520, up 2.7 percent.

Media coverage has framed this as more than a wage shift, pointing to structural changes in labor markets and society. This shift also coincides with changing attitudes among younger generations. Jobs once avoided are gaining renewed attention. The term “Tool Belt Generation,” introduced in a Wall Street Journal article in April 2024, reflects this trend. Many members of Generation Z are choosing vocational training over expensive college degrees and entering fields such as welding and plumbing. Enrollment in community colleges focused on career education rose 16 percent on year, reaching a record high. Construction-related programs increased by 23 percent, while HVAC and automotive programs grew by 7 percent.

The rise of blue-collar work is not limited to the United States. In the Britain, Brexit and population aging have pushed up wages for essential skilled workers such as truck drivers and plumbers. Similar trends are observed in Germany and Nordic countries, where demand for skilled manufacturing labor continues to grow. The return of blue-collar work is therefore a global phenomenon accompanied by shifts in perception and policy.

Several factors explain this change. Post-pandemic supply chain restructuring and expanded investment in green infrastructure have increased demand for skilled manufacturing labor. Reduced reliance on China as a low-cost production base has weakened a key force that previously suppressed wages. Demographic shifts have also tightened labor supply, especially among working-age populations capable of physical labor. As a result, the balance of power in labor markets has shifted, pushing blue-collar wages higher while lowering unemployment.

A more decisive factor is artificial intelligence. Until recently, blue-collar jobs were considered most vulnerable to automation. Since the mid-2020s, however, generative AI has reversed that assumption. White-collar roles, particularly entry-level office and professional positions, are now increasingly exposed. Large language models such as ChatGPT can write documents, generate code and analyze data, allowing companies to replace routine clerical and analytical tasks.

Dario Amodei, chief executive of Anthropic, warned in a 2025 interview with Axios that AI could eliminate up to half of entry-level white-collar jobs within one to five years and raise unemployment to between 10 percent and 20 percent. Since 2023, global firms have reduced hiring in office roles and used AI tools to streamline operations, effectively restructuring white-collar employment.

By contrast, blue-collar jobs remain relatively insulated. Current technologies excel at digital processing and pattern recognition but struggle to automate complex physical tasks requiring dexterity and situational judgment. Trades such as plumbing, electrical work, welding and carpentry depend on hands-on problem-solving tailored to specific environments. Fully automating these roles would require advances in robotics beyond current capabilities. According to Brookings, the impact of generative AI on manual labor remains limited and is likely to stay so in the near term.

Students take part in a baking practice session at the Sangseo High School booth during the “2025 Daegu Office of Education Vocational Education Expo: Specialized High Schools–Meister High Schools Festival,” held at EXCO in Daegu on Sept. 10, 2025. [NEWS1]

Korea cannot remain unaffected. A fundamental revision of national human resource development strategies is needed. First, vocational education must undergo structural reform. Korea’s system has long been centered on universities, leaving vocational high schools and technical colleges marginalized. The United States recently expanded federal investment in workforce development, including an executive order to increase registered apprenticeships and broaden funding for vocational training pathways. Korea should pursue inter-ministerial cooperation and expand investment to develop skilled labor for re-industrialization.

Second, the quality of blue-collar jobs must improve. Sustained interest from younger generations requires better working conditions, fair wages, enhanced safety and clear career pathways. Opportunities for advancement into management or entrepreneurship should also be expanded.

Finally, industrial policy must align with employment strategies. The AI and green transitions are creating new skilled roles, including solar and wind installation, battery maintenance and infrastructure renewal. Ministries must coordinate to design training programs linked to industry demand. Regional apprenticeship models in the United States offer useful lessons.

A balanced labor market in which white- and blue-collar roles complement each other should be Korea’s goal. In policy making, timing is competitiveness.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.