Economy

AI reshapes job market as Gen Z turns to blue-collar work

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(NewsNation) — Artificial intelligence is fundamentally altering America’s job landscape, prompting younger workers to reconsider career paths as automation threatens traditional white-collar positions, according to a McKinsey study.

The consulting firm’s research found that approximately 30% of current workplace tasks could be automated within five years, creating anxiety among job seekers and forcing widespread upskilling efforts across industries.

Cameron Vogelsang, an electrical contractor in Tennessee, told NewsNation that AI poses less of a threat to skilled trades than office jobs.

“AI isn’t going to take over the hard skills,” Vogelsang said. “AI can take the soft skills. That’s why you see people in white collar jobs, some of them are losing their positions because AI can now do their job.”


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More than half of Gen Z workers now consider blue-collar careers

The shift is particularly pronounced among Generation Z workers, with 65% believing their college degrees won’t protect them from AI-related job displacement. More than half of Gen Z workers now seriously consider blue-collar or skilled trade careers.

One firm reported AI adoption resulted in more than 10,000 job losses in July alone.

Vogelsang travels nationally with Energize US EDU to change perceptions about skilled trades.

“Gen Z, while there is an opportunity and people are interested in joining the trades, there’s also these stigmas that shun people away from the trades,” he said.


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Beyond job elimination, AI is affecting hiring processes.

Derek Mobley, who searched unsuccessfully for work for two years, filed a lawsuit claiming Workday’s AI-powered hiring tools discriminated based on age, race and mental health.

“What are the chances that someone would be rejected 100% of the time? That just didn’t make sense to me,” Mobley said.

Workday denied the claims, but a federal judge allowed the lawsuit to proceed as a nationwide collective action focusing on age discrimination.