Embracing Technology in the Trades: The Gen Z Influence

The U.S. job market has experienced significant changes in recent years, from the pandemic’s impact to the rise of AI. As younger generations enter the workforce, trade businesses must embrace technology to attract and retain talent, says Jeff Davis, SVP of WorkWave.

Over the past few years, arguably, no other business unit has seen as much change as the U.S. job market. Going into 2020, the labor market was strong, showing steady job growth and a 3.5% unemployment rate — a 50-year low.

Then came the pandemic –  and a panic mindset. By April 2020, unemployment skyrocketed to 14.7%, the highest rate since the Great Depression. Over 20 million jobs were lost in just two months.

Four years later, the market has come a long way towards recovery. According to a CNBC report, as businesses have adapted, unemployment rates have drawn closer to where they were pre-pandemic, hovering at 3.9% as recently as April 2024. This brings the continued stress of finding labor in a still-tight labor market. But if there’s one constant in life, it’s change—it only makes sense that a new variable is entering the market to shake things up again.

I’m speaking, as is the rest of the world, about the emergence of artificial intelligence (AI).

As AI is introduced to and adapted by different industries worldwide, it only makes sense that it will eventually influence how businesses demand and employ human talent. There’s already speculation that AI will challenge traditionally white-collar jobs, with the World Economic Forum’s most recent jobs report forecasting that nearly 75% of surveyed companies expect to adopt AI technology into their organization over the next five years—with 25% expecting it to result in job losses.

While there is still a world of unknown in this area, there’s also a world of opportunity. Take the trades, for example. As we hypothesize a possible decrease in demand for white-collar labor, there’s arguably more opportunity than ever for job market participants to thrive in more traditionally viewed blue-collar fields. For younger generations just entering the workforce, there’s even more to consider when considering what’s waiting for us in the future job market.

The Trades and Gen Z

Even with the side effects of AI adoption still largely unrealized, studies show that college enrollment is waning, dropping as much as 10% – almost two million students – in the past decade alone. High tuition (and even higher piles of student debt post-graduation) is only one reason for the divergence. A BI/YouGov survey found that only 39% of Gen Zers surveyed think advancing their education is important. Combine that with Burning Glass Institute findings that argue only 41% of US-based jobs require a bachelor’s degree, 28% of college degree programs yield a negative return on investment, and employers’ growing trend of skills-based hiring strategies. It only makes sense that our future generations might consider different alternatives for their livelihood. 

For many, that alternative is coming in the form of trade-driven work. Highlighted as essential work during the pandemic, jobs within the field service industry (HVAC, plumbing, electrical, lawn care, pest control, etc.) are still in demand. Take the plumbing industry, for example. By 2027, the US expects over half a million short of plumbers. Even in the lowest-paying states, entry-level plumbers can make over $40,000Opens a new window . Although program costs vary, certificate programs can cost even less than associate degree programs, with additional in-depth training paths available for licensure. Even with those earnings right out of the gate, there are exponential opportunities for high-earning positions in the field, especially in commercial plumbing and industrial piping segments. 

That said, if Gen X were the pioneers and Millennials were the mainstream adopters of our technology-driven world, Gen Z would be the first generation to really integrate with technology since birth. So, as they move towards jobs that are stereotypically rooted in manual labor, they’ll be doing so with demands to bring the trades into the 21st century.

I know what that sounds like. Plumbing, for example, involves installing, repairing, and maintaining pipes. It inherently requires you to put on a tool belt and get your hands dirty.

For the most part, that’s true. But it is also true that there are many ways technology can improve the work experience of that plumber, whether it’s the equipment they use or the time they’re able to shave off of each job and put more money in their pockets – and that’s what Gen Z will be demanding. 

Employing People and Digital Systems

Historically, field service businesses, especially small- and medium-sized markets, have proven slower to adopt technology as a tool to help run their business, both because of the perception of cost and time demands it takes to implement tech systems alongside operations, as well as a natural resistance to change. Even as recently as five years ago, the average age of a plumber in the US was 41 (Generation X). Although the average age of a plumber today is still around 40, we’ve reached the point where those workers are now representative of the Millennial generation.

With this shift in the workforce comes an increase in willingness to employ digital technologies. There are several ways businesses can consider implementing technology alongside their operations in a way that can attract and retain even younger generations. 

• Technology for making job applications less of a hassle: Younger generations are used to doing everything online and on their mobile devices, and they expect the job application process to be just as seamless and user-friendly. By using online job boards, applicant tracking systems, and mobile-friendly application forms, businesses can make it easier for younger candidates to find and apply for open positions. AI screening bots can quickly qualify applicants, saving time for both candidates and recruiters. Even with businesses that employ this technology, there’s likely room for improvement throughout the recruiting and hiring process. Depending on the position you’re hiring for, there are certain questions you must ask to determine a candidate’s ability to do the job (as well as ensure the hire complies with job requirements and regulatory needs). Remember, though, applicants are more likely to abandon the process if an application is too in the weeds or takes too long to complete. Even with partial applicant capture capabilities, you should streamline the questions you ask and the steps you require applicants to complete to identify the right candidate in the shortest amount of time.

• Technology for time optimization: Automated scheduling systems can be a game-changer for younger workers who value work-life balance and flexibility. By using software to manage employee schedules, businesses can ensure that workers have more control over their time, with the ability to request time off, swap shifts or jobs, reorganize their day, and adjust their schedules to accommodate other commitments. Automated scheduling can help reduce the need for overtime or last-minute scheduling changes, which can be stressful and disruptive to workers’ lives (and a drain on a business’ labor costs). These tools should be easy for employees to access from their mobile devices no matter where they are – in their fleet van or personal vehicle, from a job or on route to another, or anywhere else.

• Technology for reducing the manual lift: While most trade jobs will always require manual labor, technological advancements can help reduce the physical strain on workers and enhance safety and efficiency. For example, drones equipped with cameras can be used to inspect hard-to-reach areas, reducing the need for workers to put themselves in potentially dangerous situations. Diagnostic tools and sensors can help workers identify problems more quickly and accurately, reducing the time and effort required to complete repairs. This can extend even to exoskeletons and other lifting aids, which can help reduce the risk of injuries and make it easier for workers to handle heavy equipment and materials.

The Future of Work and Technology

By embracing innovations in business technology, companies can improve how their current workforce operates while preparing their business for an influx of new employees from younger generations. In the years to come, those trade businesses that prioritize technology will be the ones that thrive, building a workforce that is engaged, productive, loyal – and hungry for an alternative to traditional collegiate paths. 

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