By Nmesoma Okechukwu
- Blue collar wages have surpassed inflation by 4% in the last four years
- 30% of U.S. jobs could be lost to automation by 2030
A lot of Gen Zers may think that it’s now their world and other generations are simply living in it, but the job metrics would say differently. Since the great resignation of 2021/2022, there has been a decline in wage raises for white collar jobs, so much so it’s becoming a source of anxiety for the average Gen Zers. Blue collar jobs, interestingly, are still getting a pay rise. I guess that means it’s still a good day for our hospitality and health workers. But why is the white collar job market in a desperate stall?
Why This Matters: According to new reports, young people working in professional and business services, the finance industry, and education are yet to see wage gains that tallies with inflation. Teachers, in particular, are said to be nearly 5% below inflation. An attempt to explain this reminds us that during the great resignation, new graduates saw a position and pay bump. This might more or less explain why the promotion rates have stalled since then.
In addition to tech and finance companies feeling a reluctance to give their newest hires a pay rise, there’s been a white collar job hiring freeze. Big companies, like Meta, have stopped hiring across sections, with Amazon CEO Andy Jassy, even predicting that improved efficiency in AI could mean white collar job cuts. From this party, Gen Zs come out as the most disadvantaged group, with promotion rates for workers aged 25-34 coming out at 14.5% compared to 16%-17% in 2019. In the same way, 17% of workers aged 20-24 received a promotion in May 2025 compared to 22%-23% in 2019.
What’s Next: In contrast to this, since AI and automation are not as encroaching on health and hospitality industries as they are for tech and professional services industries, blue collar wages have surpassed inflation by 4% in the last four years. This makes the job choice for Gen Zs a hard one: go corporate and risk working in a stalling market or go the way of their non-degree friends and enjoy some of the stability a pay rise offers.
If all else fails, we could all try being nurses.
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