The trades have a big recruitment and optics problem. One of the biggest challenges is legacy mindsets around long term trade income potential that are usually disconnected from reality. In this article we highlight how to challenge these perceptions on a local level with facts.
By Jason Krantz, Founder of Labor Titan, linkedin.com/in/jasonkrantz/
Join our trades mailing list for more cutting edge content like this.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
• The skilled trades sector faces a critical shortage of workers, impacting various industries and local economies.
• Few parents and students are likely to consider the trades career path. A primary driver is outdated perceptions on the career earning potential.
• Anecdotes of great earning potential are not enough. Addressing this knowledge gap starts with changing perceptions of the careers technological background as well as wage data.
• Bringing better optics to the local career and earning potential of trade jobs will increase the pool of people considering this career path.
• Market pay data and analytics must be used to help educate people on trade pay realities across experience levels.
• Recruiting is done locally, so pay needs to be contextualized and communicated locally.
• National level pay figures are not enough. Current local pay intelligence is needed to help people understand their earning potential.
• By leveraging accurate, localized pay data and strategic partnerships with schools, local trade associations, and workforce development boards, we can reshape perceptions of trade careers.
Employment and Pay Facts Trade jobs represent ~35.6 million jobs, or 23% of the US workforce. Comparing trade pay across experience levels to US averages highlights that: • 78% of all trade jobs offer entry level wages above $30,000 (US 10th percentile pay) • 47% of trade jobs offer mid-career pay above $50,000 (US median pay) • 14% of these jobs offer expert level pay above $100,000 (US 85th percentile pay)
When you think of skilled labor jobs like plumbing, electrical work, HVAC repair, carpentry and other hands-on jobs, what comes to mind?
For many, outdated stereotypes persist about these careers being unglamorous, low-paying, or dead-end paths. However, this couldn't be further from the truth in today's skilled trades landscape.
From the electricians who wire our homes and offices to the HVAC technicians ensuring our air conditioning and heating units run smoothly, skilled tradespeople are the backbone of our society's infrastructure and conveniences of modern living. These are the ones we turn to to apply the latest technologies for our quality of life.
Yet despite their essential importance, opportunities in the trades are often overlooked by young people today who have been steered toward the "safety" of a four-year university degree.
The goal of this article is to challenge these perceptions with facts and highlight the many advantages of pursuing a skilled trades career path. It is a career journey that can lead to great earnings, excellent career prospects, freedom, ongoing development, and immense personal pride.
Whether your interests lie in becoming a computer numeric controlled (CNC) machinist, aircraft mechanic, plumber, welder, carpenter, auto mechanic or one of the many other skilled vocations, the trades deserve a serious look.
What Are Trade Jobs?
Trade jobs typically refer to occupations that require specialized skills, knowledge, and training in a particular craft, technique, or field. They are essential to infrastructure, manufacturing, transportation, and service industries.
These jobs often involve manual or practical skills, hands-on work, and are learned through a combination of on-the-job training, apprenticeships, technical/vocational education, and sometimes certification programs. Many involve the use of high-tech computerized tools and software to ensure quality of work.
The term “trade jobs” is informal and doesn't have a universally agreed-upon definition in official classification systems. For this analysis we will focus on the following major occupation groups in the standard occupation code classification system: o 47-0000 Construction and Extraction Occupations - ~75% of these jobs are in the construction industry. o 49-0000 Installation, Maintenance, and Repair Occupations - Concentrated in the retail trade, construction, manufacturing, and real estate industries. o 51-0000 Production Occupations - ~75% of these jobs are in the manufacturing industry. o 53-0000 Transportation and Material Moving Occupations - Focused on the movement of material, goods, and people across the supply chain, transportation, manufacturing, distribution, retail, and waste management industries.
Click here to see a list of the detailed occupations that are in each occupation group.
We segment trade jobs into two categories: blue collar and grey collar.
Blue-Collar Jobs
These roles focus on operating machinery, as well as hands-on, physical work. Think of the person building houses, moving product/materials, or working in a factory. These jobs often involve:
Working with tools or machinery
Jobs in construction, manufacturing, maintenance, or transportation
Some manual labor component
Often don't require a college degree, but may need specific training or apprenticeships
Problem-solving approach typically involves a practical, hands-on perspective
Career advancement is often based on experience and skill mastery
Transportation and material moving trades (forklift drivers, truck drivers)
Grey Collar Jobs
These roles are a mix between blue collar and white collar/knowledge work. They usually involve physical work, but also require more technical knowledge or customer service skills. These jobs:
May involve more customer interaction
Combine hands-on work with technical expertise
Often require specialized training, certifications, or some college education
Heavier use of computers and advanced technology compared to blue-collar roles
Problem-solving approach typically requires a more analytical or diagnostic perspective
Career advancement may have more diverse paths, including into management or specialized planning or set-up roles
Trade jobs encompass a wide range of occupations that span both blue and grey collar categories. The specific classification often depends on the level of technical expertise required, the work environment, and the evolving nature of the job in response to technological advancements.
Your definitions of the trades might vary, but the overarching future workforce recruiting challenge, and the value of accurate market pay data in helping address that challenge is still the same.
How Big Are The Trades?
Our universe of trade jobs represents ~35.6 million jobs, or 23% of the US workforce.
Current Status of the Trades: A Growing Gap
The US trades sector is facing serious workforce shortfalls as industry talent recruitment/development headwinds put these jobs at a critical juncture. Factors driving the workforce shortfall include:
Education system focus: The long-standing emphasis on four-year college degrees has diverted many talented workers from trade careers.
Perception issues: Persistent stigma around trade jobs as less desirable or prestigious (despite comparable or superior wages) compared to white-collar work, leading to difficulties in attracting younger workers.
Lack of exposure: Reduced vocational programs in middle and high schools limit early exposure to trade careers.
Technological advances: Rapid changes in technology create a constant need for upskilling which can deter some from entering the field.
Retirement wave: The baby boomer generation, which makes up a significant portion of skilled tradespeople, is retiring en masse.
Economic cycles: Boom-bust cycles in industries like construction can lead to periodic worker shortages and surpluses, discouraging consistent career entry.
Training investment: Employers' reluctance to invest in long-term training programs due to fears of trained workers being poached by competitors.
Changing work preferences: Younger generations often prioritize work-life balance and may perceive trade jobs as lacking in this area.
Immigration policies: Fluctuations in immigration policies affect the availability of workers in many trade sectors.
Globalization: Offshoring of manufacturing and some services has reduced domestic opportunities in certain trades, discouraging entry into these fields.
This workforce shortfall is a complex issue that has developed over decades and is likely to persist without significant, coordinated efforts from industry, education, and government to address these challenges.
Recruiting the next generation of trade workers will be essential on addressing this growing workforce gap.
4 Key Trades Recruitment Gap Drivers
In 2022 Black and Decker released their Makers Index1. This was an in-depth research study examining sentiment about skilled trade careers in the United States, specifically among young people and their parents, with the goal of better understanding some of the underlying causes of the skilled trade labor shortage.
The Black & Decker research found four key drivers of the skilled trades recruitment gap:
Misunderstanding of long-term financial security: 81 percent of young people and 78 percent of parents are concerned about the potential cost of education after high school. 87 percent of young people and 93 percent of parents say starting a career sooner than it takes to finish a four-year degree is appealing, but young people are underestimating the earning potential for skilled trades.
Only 42 percent expect skilled trade workers to earn at least $50K, and 19 percent of young people think the starting pay for a skilled trade worker is less than $20K. In fact, half of current skilled trade workers with less than 10 years' experience earned at least $50K to start.
This is the most potent area we can focus on to increase the number of people that consider the trades as a career.
Incorrect knowledge of required skills: Of the 40 percent of young people who don't believe a skilled trade career is a good option, only 12 percent cited a dislike of manual labor as their primary reason. The main reason cited by those 40 percent of young people was poor fit or lack of skills.
Lack of exposure to individuals currently in the trade profession: Young people lean heavily on people they know – including parents (48% percent), friends and classmates (44 percent) as well as teachers (43 percent) – for help and information related to post-high school planning.
Only 42 percent have had a conversation about skilled trade careers with someone in those fields, while 37 percent have never had a conversation with anyone about skilled trade careers.
Continued male-dominated industry: When asked about their familiarity with skilled trades, teen boys are more familiar than teen girls (53 percent vs. 36 percent), and in thinking about the future, boys are more likely to consider a career in a skilled trade (64 percent vs. 49 percent).
The rest of this article will be focused on dispelling the long-term financial security myth as it is the topic we are best positioned to help address.
The best way to challenge legacy pay perceptions is with facts. We will be using our Labor Titan market pay data to highlight the actual earning potential and career prospects of trade jobs across the US.
We are uniquely positioned to help address this challenge as we have arguably the best, most complete, and most current trade pay data available anywhere.
Important note: All figures presented are national level estimates and represent salary/wages only. Benefits and other forms of compensation are not included. Figures exclude overtime wages and other forms of special compensation (bonuses, profit sharing, etc). Assumes 2,080 straight time hours worked per year.
The source for all figures is Labor Titan data as of June 2024. Your local metro pay will vary from the national level figures based on location, experience, specific employer, and a host of other factors.
Comparing trade pay across experience levels to US averages highlights that:
78% of all trade jobs offer entry level wages above $30,000 (US 10th percentile pay)
47% of trade jobs offer mid-career pay above $50,000 (US median pay)
14% of these jobs offer expert level pay above $100,000 (US 85th percentile pay)
Digging deeper tells an even more compelling narrative on the earning potential of these careers, especially with higher level jobs.
For context, the US real median personal income in 2023 was $42,220. Source: https://fred.stlouisfed.org/series/MEPAINUSA672N
1) Starting Salaries Many trade jobs offer strong starting salaries, often higher than entry-level positions requiring a four-year degree. For instance, apprentice electricians can start at $35,000-$40,000 annually, with rapid increases as they gain experience. o Welders, cutters, solderers, and brazers: $40,000 - $45,000 o Structural iron and steel workers: $40,000 o Brickmasons and blockmasons: $42,500 o Tool and die makers: $43,000 o CNC operator: $36,600 o Machinists: $38,000
2) Mid-Career Earnings As tradespeople gain experience and skills, their earning potential can grow significantly. The pay ranges below are larger which reflects the longer period of time people can be in this experience level. o Plumbers: $65,000 - $90,000 o Skilled welders: $55,000 - $65,000 o HVAC technicians: $57,000 - $80,000
3) Experienced Earnings $100,000+ non-supervisor jobs for senior workers are plentiful in the trades. o Construction and building inspectors: $110,000 - $130,000 o Aircraft mechanics and service techs: $120,000 - $135,000 o Structural steel workers: $107,500 o Sheet metal workers: $105,000 o CNC Programmers: $100,000
4) High-Demand Specialties Some specialized trades command even higher salaries.
o Telecommunication installers and repairers: mid-career $66,500, expert $107,000+ o Elevator installers and repairers: mid-career $108,000, expert $145,000+ o Subway and streetcar operators: mid-career $97,200, expert $150,000+ o Electrical power-line installers: mid-career $92,000, expert $127,500+
5) Leadership Roles Management roles can pay very well and may have significant upside in variable pay. All figures reflect expert level pay. o Mechanic supervisors: median $80,000, expert $122,000 o Construction supervisors: median $80,000, expert $125,000+ o Manufacturing supervisors: median $69,000, expert $110,000+ o Transportation and material handling supervisors: median $60,000, expert $91,500
6) Overtime and Bonuses Most trades offer opportunities for overtime pay and performance bonuses, significantly boosting annual income potential.
7) Self-Employment Potential Tradespeople who start their own businesses can earn well into six figures annually, depending on their specialty and business acumen.
8) Regional Variations Salaries can be even higher in areas with strong demand for specific trades.
9) Career Progression As you advance inexperience and grow your capabilities (in formal programs, from apprentice to journeyman to master), your earning potential increases substantially. As highlighted above, master tradespeople can earn $100,000+ annually.
10) Benefits Many trade jobs come with excellent benefits packages, including health insurance, retirement plans, and paid time off, adding significant value to the overall compensation.
11) Earning While Learning Unlike traditional college paths, apprenticeships in the trades allow you to earn money while gaining your qualifications, avoiding the burden of student debt. Additionally, your employer will often reimburse you for occupation related coursework.
12) Long-term Stability The consistent demand for skilled trades provides job security and stable income over time, with many trades being resistant to automation and outsourcing. In fact, automation often creates new higher paying jobs to tend to it such as in robotics.
13) Intangible Benefits from Tangible Work Many tradespeople speak of the joy they feel of accomplishment and seeing their work take shape on a daily basis.
By choosing a career in the trades, you're not just selecting a job – you're investing in a skill set that will always be in demand and can provide a comfortable lifestyle. Starting pay will often be at or above the level of the Real US median personal income-or reaching it in a few short years.
The earning potential, combined with job security and the satisfaction of tangible work, makes the trades an excellent career choice for many individuals.
Trade Pay Across Experiences Levels By Occupation
The information below highlights pay across experience levels by occupation. Here is how to interpret the numbers.
1) Entry: 10th percentile pay for the US. Entry level jobs. 2) Mid: 50th percentile pay for the US. Mid-career level jobs. 3) Expert: 90th percentile pay for the US. Seasoned/expert level jobs. 4) 2024 Jobs: Estimated number of US jobs as of May 2024 5) Entry, median, expert pay visualized to enable easy wage level and range comparison across occupations.
What is a percentile? It is a salary/wage where a certain percentage of salary/wages fall below that number.
Example: If your wage is equal to the "expert" level (90th PCTL) then you earn more than 90% of the people in your market that have a similar role.
The primary driver for wage variance in the same occupation in the same market will usually be related to expertise, experience, and/or responsibilities. Higher levels of these attributes lead to more earning power within a given occupation.
Pay Ranges Across Experience Levels Matter Below is an example of how you can use our pay data below for effective wage comparison. The 4 occupations below have similar entry and median wages. However, we can see the sheet metal expert level extends much further to the right than the structural metal fabricators.
This is telling us that at the higher experience levels the sheet metal workers will earn significantly more money. This is something important to consider when assessing a job/career or are advising a person/parent on one.
Point being, you may be doing certain careers a disservice by just focusing on starting or median pay.
Let’s dive into the numbers.
Blue Collar Pay
The 50 blue collar occupations below represent ~92% of all US blue collar occupations.
Grey Collar Pay
The 50 grey collar occupations below represent ~91% of all US grey collar occupations.
National Averages = Starting Point: Geographical Pay Differentials Are Essential
National level figures don't provide a complete picture of the true earning potential of different trade jobs across the US. Changing local perceptions requires metro level data.
The graph below highlights electrician median pay across 384 metros. Each circle in the graph represents a metro. Bigger circles = More electricians.
We can quickly see that median pay varies significantly across markets. Variation will happen because of labor supply/demand, geographic pay differentials, cost of living, and a host of other factors.
In the scatter above we can see the national median pay for electricians is $64,500 (dotted line), but Chicago's electrician median pay is $106,000. While this example is focused on one occupation, metro wage differences like this are consistent across all occupations.
The challenge is most people are exposed to just national level figures because going deep on trades pay is hard. This perpetuates the knowledge gap between what people think a job pays and what it actually pays in their local market.
National pay data isn't enough. Breaking the perception gap requires the next level of detail: local market pay.
Digging into metro level pay across each trade occupation is beyond the scope of this article, but it is an essential factor when promoting the earning potential of the trades to students and parents locally. We can help solve this challenge.
Addressing The Trades Pay Perception Challenge Together
Getting current and reliable pay information to promote the earning potential of trade jobs in your local market is easy with us.
Below is an example of what a Chicago HVAC educational program might provide to both parents and students considering their program. This 3 page marketing document for HVACR Mechanics and Installers (49-9021) could help highlight the local earning potential of different jobs HVAC students could get upon graduation.
Each occupation is a grouping of related jobs. Click here to see a list of the job titles that are included in the HVACR occupation code.
This content gives parents and students all the core information they need to better understand the job and earning prospects of the target occupation in the local labor market.
Information like this can supercharge your recruitment efforts, marketing materials, program promotional events, and more.
This testimonial from Bob Clark, HVACR program chair at the College of DuPage in Illinois, highlights the benefits of partnering with us.
Communicate Value
Labor Titan helps educational institutions by clearly communicating the value of their programs to both current and prospective students. They help bring greater clarity to the ROI students get out of their education investment and career earning prospects. They also have specific and up-to-date local market data that gives institutions a more informed data snapshot of the communities they serve. Their platform is the best I have ever seen.
Dr. Bob Clark
HVACR Program Chair, College of DuPage
Reach out if you are interested in having targeted, robust, and concise market pay content like this to augment your marketing materials, program promotional events, and recruitment efforts. Request local market pay tailored to the specific needs and location of your program. Even if your program already leverages market pay solutions from other large name providers, I'm confident you will find value in this content above and beyond what they can offer.
Next Steps: Partnership Is the Key to Success
Establishing strategic partnerships to disseminate accurate trade pay information will be a critical piece of the trade recruitment puzzle.
We are positioned to partner with you across the US on your pay intelligence needs. Together we can bring reliable pay intel to your target audience. Collaboration partners we can work with to help address this problem include:
✔ High schools and vocational education programs can integrate real-world local trade pay data into career guidance materials.
✔ Local trade associations can leverage their member networks and credibility to communicate pay realities across many communities and local institutions.
✔ Community colleges and technical schools can provide up-to-date local pay information for their prospective students and their parents.
✔ Local workforce development boards can incorporate trade pay data into their career counseling and job placement services.
✔ Social media and online platforms frequented by young adults can share infographics and interactive tools showcasing local trade pay data. ✔ Employers: Use this information to help ensure your pay is competitive with the market. By leveraging accurate, localized pay data and strategic partnerships, we can reshape perceptions of trade careers. This approach will illuminate true earning potential, expand the candidate pool for these professions, and support local economic growth.
%20Chicago%20Metro%20(June%202024)%20-%20Pg%201.png)
%20Chicago%20Metro%20(June%202024)%20-%20Pg%202.png)
%20Chicago%20Metro%20(June%202024)%20-%20Pg%203.png)
