Voice of the American Supply Chain Voice of the American Supply Chain

The Future of Manufacturing: The New-Collar Worker

Why Workers Leave (and Stay)

WHY WORKERS LEAVE (AND STAY)

PAY

CULTURE

SKILL-BUILDING

The Blue-Collar Labor Market by the Numbers

THE BLUE-COLLAR LABOR MARKET BY THE NUMBERS

Gone are the days of the 1940s when defining white-collar workers as using their heads and blue-collar workers as using their hands made sense.

Recent labor data indicates the balance of power has shifted from supply chain employers to supply chain workers. Today, there are more open jobs than available workers, creating increased competition for low-wage earners who now have their choice of employers. This is a starkly different picture of how the labor market worked a mere decade ago.

2010

2019

Blue-collar employees find themselves in the position of having options for the first time in a long time. This has empowered more than unemployed workers. Those in jobs have more incentive to leave for a better opportunity. What's more turnover costs employers a lot of money and reduces productivity.

523K

2,575K

OPEN BLUE-COLLAR JOBS

NUMBERS OF WORKERS AVAILABLE

Who we surveyed

18,505

hourly, blue-collar workers

Occupation

Hover over to explore

12%

11%

16%

23%

Welder

Quality Control/ Inspection

Order Selector

Production Worker

12%

Maintenance Technician

Machinist (CNC or Manual)

Loader/ Unloader

Lead/ Supervisor

Inventory Control

General Warehouse

23%

Forklift Operator

16%

Other

11%

General Manufacturing

Experienced Machine Operator

35–54 (GenX)

33%

25–34 (Millennials/GenY)

33%

55 and older (Baby Boomers)

26%

18–24 (GenZ)

Age

10+ years

12%

5–10 yrs

12%

3–5 yrs

19%

1–3 yrs

12%

6 months–1 yr

22%

23%

0–6 months

Industry Tenure

Voice of the

blue-Collar worker

The cost of turnover is significant. And, retaining talent has never been more challenging for manufacturers and other supply chain employers.

The goal is to shed light on the unique factors that attract, motivate and retain the blue-collar workforce. For the first time in a decade, there are far more blue-collar jobs on the market than there are skilled workers to fill them.

Pay increase vs. turnover. it's a matter of cost.

Download the full report

804K

738K

OPEN BLUE-COLLAR JOBS

NUMBERS OF WORKERS AVAILABLE

2010

2019

Includes: Manufacturing & Transportation Warehousing & Utilities

PAY

1. PAY

Wages are the number one reason workers accept a job.

Pay

22%

Main factors for accepting a job

Recognition

Company culture

Paid time off

Flexible shift/ assignment

Good supervisor

Advancement opportunities

Training/ learning new skills

Benefits

12%

Job security

17%

Employers could take the money it would cost to lose an employee and apply it towards a pay increase.

$0.25 per hour

$0.50 per hour

Hourly Pay Increases for Workers Who Left a Job to Make More Money

The $4,659 it costs employers that lose one blue-collar worker can fund a $2.24 hourly pay raise instead. Only 17% reported leaving their last job to make more money. But for those who do leave a job because of money, $2.24 can be life-changing

$0.75 per hour

$1.00 per hour

13%

$1.25 - $1.50 per hour

11%

$1.50 - $2.00 per hour

18%

More than $2.00 per hour

42%

It was not a similar position.

10%

CULTURE

SKILL-BUILDING

3. SKILL-BUILDING

Today's blue-collar workers are also eager to learn new skills, which most see as the basis of a pay rise.

12%

46%

39%

Fear current job will be eliminated

Hover over to explore

Reason for learning a new skill

up to 5 hours per week

69%

5+ hours per week

31%

Time employees would invest in learning a new skill

35%

20%

Great way to grow my career/skills

Want to pursue but have not had the opportunity

Perception of apprenticeships

90%

38%

Extremely Interested

Interested in apprenticeships

Cost of losing 1 employee = $4,659*

12%

Transition out of industry

39%

Get ready for a new job /promotion

46%

Earn more pay

2. CULTURE

While pay is the largest factor in taking a new job, it is work culture that most often keeps blue-collar workers at their job.

What does good company culture mean to you?*

Skill development and promotion opportunities

The people I worked with

I was appreciated

Flexibility with college schedule

Company made me feel valued

Flexible with family and personal issues

Good boss

Job security

Felt like I belonged

Treated like a person, not a number

CULTURE

THE FUTURE OF MANUFACTURING: THE NEW-COLLAR WORKER

Highly capable and eager to learn and adapt, new-collar workers may well solve the skills gap facing supply chain employers.

White-Collar Worker

(Driven by Technology Disruption)

New-Collar Worker

Blue-Collar Worker

The rise in blue-collar workers wanting to pick up new skills corresponds to a shifting labor market that will demand new skills, and a whole new type of employee — the new-collar employee. Manufacturers are on pace to have two million unfilled jobs by 2025, and the skills needed to close this gap are digital in nature – automation and software operations, robotics, data analytics, cloud computer maintenance, 3D printing, and working with CAD files for CNC machining. What will be required will be a workforce that has digital skills, but not necessarily a bachelor's degree. New-collar workers exist within the divide between white-collar and blue-collar and demonstrate that the divide is in fact shrinking. Hover to learn more about each worker.

The realities of the marketplace bring many choices to a shrinking blue-collar workforce. Blue-collar workers, traditionally perceived as having few choices in the job market and easily replaceable, are now increasingly scarce, in high-demand and hungry for skill-development, upward mobility and a work culture that treats them with respect. Organizations that fail to meet their growing expectations will find it difficult to secure the manpower they need to meet customer demands and maintain stable, safe and productive operations.

Thinks for a living Has an autonomous work model Works on higher-value complex issues

Works with artificial intelligence (AI) and robotics Does problem-solving Makes rapid decisions

Performs manual tasks for a living Uses a “command and control” work model Completes lower-value, repetitive tasks

Learn strategies for building your future workforce and solving the talent supply shortage.

Learn About Our Workforce Specialists

Want Employbridge to help you find and retain talent?

OUR SURVEY SPONSORS

Hover over each sponsor to learn more.

ResourceMFG, a specialty division of EmployBridge, is the nation’s largest staffing company focused exclusively on the manufacturing industry, providing talent in production, welding, machine operations, assembly, quality, maintenance, supervision and all levels of management.

ProLogistix, a specialty division of EmployBridge, is the nation’s leading logistics workforce specialist, providing all levels of logistics personnel from entry-level, skilled and managerial talent for the warehouse to senior executives of the supply chain.

Select, a specialty workforce division of EmployBridge, offers rapid deployment capabilities for high-volume users of staffing in need of light industrial and clerical skills.

As workforce specialists, EmployBridge provides value-added workforce solutions and job opportunities. Combining the advantages of national scale, in-depth local market knowledge, supply-chain-specific expertise, and powerful recruiting and retention tools, EmployBridge is recognized by Staffing Industry Analysts as America’s largest industrial staffing firm. EmployBridge is also helping close the skills gap in America’s supply chain by providing free, career-focused skills development to its temporary associates through the firm’s Better WorkLife Academy.

Download the full report

One of our specialty franchise divisions, Remedy is focused on quality staffing solutions for administrative, clerical and light industrial workforce needs.

One of our specialty franchise divisions, Westaff is an experienced provider of talent from administrative, accounting, and call center professionals to light industrial and technical personnel.

For media inquiries or to schedule an interview, contact Ken Christensen, VP of Public Relations | 404.694.6409

*Real survey responses

$4,659 = $2.24 hourly pay raise

*Center for American Progress

95%

would invest personal time to learn a new skill

Time willing to invest

Download our latest Insights Report - Pay Increases vs. Turnover: It’s a Matter of Cost

How much does turnover cost your business? Use our free cost of turnover calculator to find out.

Calculate Your Turnover Costs

How much does turnover cost your business? Use our free cost of turnover calculator to find out.

Calculate Your Turnover Costs