Amid rising youth unemployment and the looming threat of artificial intelligence (AI), new data suggests that younger workers are driving job growth in the construction and trades industry as Generation Z turns to blue-collar jobs.
According to data from HR platform Employment Hero, Gen Z workers were hired last month by significantly more than any other generation.
Employment in this age group, which includes those born between 1997 and 2012, increased by 16.8% in January compared to the same month last year.
By comparison, employment for Gen Y grew by 5.5% in January compared to a year ago, for Gen X by 6.7% and for baby boomers by 7.1%, according to the data.
Employment Hero analyzed pay data from more than 500 construction and trade businesses in the UK and approximately 13,000 employees using its platform.
It also found that wages in the sector increased by 9.6% in January compared to the same month last year, based on a three-month moving average.
The company said its analysis points to broader generational changes in career aspirations, with many younger workers attracted to trade jobs that offer immediate earning opportunities and the potential for salary increases.
It also comes as many companies are turning more to the use of AI and automation to cut costs and streamline operations, raising concerns about worker turnover and future job security.
Official figures on Tuesday showed youth unemployment at its worst level in more than a decade.
The unemployment rate for 16- to 24-year-olds rose to 16.1% in the three months to December, the highest level since early 2015.
Companies in industries that tend to attract young workers, such as retail and hospitality, have been particularly squeezed by rising labor costs, which experts say is having a ripple effect on employment.
Kevin Fitzgerald, UK managing director at Employment Hero, said: “With employment for Gen Z growing three times faster than any other generation, it’s clear that Gen Z is leading the resurgence of the blue-collar workforce.”
“It’s clear from recent announcements that the Government believes training and apprenticeships have a big role to play in tackling Britain’s youth unemployment problem, and our figures show the sector is playing a role in driving us towards that mission.”
The Government has committed to investing £725m in creating 50,000 apprenticeships to tackle rising youth unemployment.
