The rise of artificial intelligence and automation is transforming the jobs landscape, making way for the growth of the “new collar” job. The term was coined in 2016 by then IBM CEO Ginni Rometty to characterize jobs geared to the digital economy. But the growth is just beginning.
The jobs can be technically complex but do not necessarily require a four-year college degree. With the cost of college education often leaving students deep in debt, many young people have been seeking alternatives, like vocational training, certification programs, coding boot camps and internships that can provide a pathway to a lucrative career, without costing them a fortune.
More than 43.6 million borrowers have an average federal student loan debt of $37,718, according to a report by the Education Data Initiative. And college enrollment in 2024 was down 8.43% from peak enrollment in 2010, according to the report.
New collar jobs combine white collar and blue collar attributes, but with a digital twist. Positions like cybersecurity analysts, cloud computing specialists, database administrators and digital marketers are gaining traction.
“The new collar way of working” is a blend of someone who has technological skills but “can also think more broadly to drive business outcomes,” said Jake Canull, head of the Americas for the Top Employers Institute, an Amsterdam-based organization that recognizes excellence in human resources practices. “You’re looking at IT services, you’re looking at health care, you’re looking at pharmaceuticals. You’re looking at energy as an example.”
A recent McKinsey Global Institute report found that up to 14% of the global workforce may need to transition into these types of roles by 2030.
Certain New York industries are particularly ripe for growth. John Morgan, president of recruitment firm LHH’s Career Transition & Mobility and Leadership Development businesses, said he expects a 28% increase in medical and health services managers between 2025 and 2035.
Roles like medical coders, pharmacy technicians and lab technologists are expanding due to an aging population and advancements in healthcare tech, Morgan said.
Green energy is another avenue for growth, with workers who have the technical expertise to install solar panels, maintain wind turbines and service electric vehicles expected to see big increases in their numbers.
“We see mechanical and industrial engineers in huge demand. So we project 10 to 12% growth there over the next decade,” Morgan said. “Cybersecurity is another huge growth market,” which will increase by 32% over the next 10 years, he added.
Morgan said warehouse management is yet another opportunity for new collar careers. Digital retailers like Amazon use a high level of robotics, launching “a whole new type of job function in warehousing and inventory management, he said, “which is all about making sure that the grid works, making sure that you know that the last mile of transport is going to work, making sure that robots are tuned. I mean, all of that stuff for sure, does create a new emerging sector for jobs. There’s no doubt about it.”
But even workers with college degrees need to be prepared to step into roles that will require new tech skills as the job market shifts. Employers would be wise to identify candidates and provide the training now.
“I tell my clients to be very intentional about the way you’re going to leverage generative AI, in your business and in your in your business model,” Morgan said. “And then figure out, what are the best courses, what is the best learning, what are the best sort of career paths that make sense for people inside of your organization.”
