[News Terms] No White Collar, Yes Blue Collar: The 'Gonggu Belt Generation'

Higher Wages and Irreplaceability Compared to Office Jobs
Increasing Preference for Tech Jobs Among Korean and US Gen Z
Tech Job Vlogs Popular on YouTube

The Generation Z (born from the late 1990s to the early 2010s), who have fully entered the job market, are turning their attention to 'blue-collar' jobs. This trend is attributed to preferences for high income and jobs that are irreplaceable in the era of artificial intelligence (AI).

The term 'Tool Belt Generation' refers to the generation flocking to high-paying production and skilled labor jobs. It is a neologism coined by the US Wall Street Journal (WSJ), referring to the tool belt used to carry various tools. In April, WSJ reported in an article titled "How Generation Z is becoming the Tool Belt Generation" that the number of young people choosing technical jobs over college enrollment is increasing.

Technical Job Vlog [Photo by YouTube]

Jobs considered 3D (dirty, dangerous, and difficult), such as welders and plumbers, are gaining popularity. In fact, the number of students enrolled in vocational training colleges in the US increased by 16% compared to 2022. This is the highest level since the National Student Clearinghouse (NSC) began tracking related data in 2018. During the same period, the number of students learning construction technology rose by 23%, and those studying vehicle maintenance skills increased by 7%.

WSJ explained that the cause of this phenomenon lies in the perception that the utility of a diploma has decreased compared to the skyrocketing college tuition fees over the past decades. The sharp rise in wages for technical jobs also played a role. Last year, the wage for new employees in construction jobs rose by 5.1% to $48,089 (about 69 million KRW). During the same period, the wage increase rate for workers in the service sector was 2.7%, amounting to $39,520 (about 57 million KRW).

Similar movements are observed domestically as well. A survey showed that 7 out of 10 Generation Z job seekers prefer 'technical jobs with an annual salary of 50 million KRW' over 'office jobs with an annual salary of 30 million KRW.' In November last year, recruitment platform Catch conducted a survey of 2,446 Generation Z job seekers on '30 million KRW office jobs vs. 50 million KRW technical jobs,' and 72% of respondents said they preferred the 50 million KRW technical jobs.

An employee checking the schedule at the Seoul Youth Job Center
Photo by Yonhap News

High wages played a major role in the preference for technical jobs. The top reason for intending to pursue technical employment was "because I can be rewarded according to my effort (58%)." According to the Korea Construction Association, as of September last year, the average daily wage for an 8-hour workday for technical workers performing various cable installation and maintenance tasks, such as communication cable workers, was 414,944 KRW, while tile workers earned 274,325 KRW, and welders earned 267,021 KRW. Considering overtime and special work, the actual wages are estimated to be even higher.

In fact, vlogs documenting learning skills and earning high income are gaining popularity on YouTube. The so-called nickname "King Sanjik" (King of Skilled Jobs) given to the technical workforce of Hyundai Motor Group, known for top wages and welfare, is also related to this trend.

The second most cited reason for intending to pursue technical jobs was "because I can acquire skills that are difficult to replace (23%)." This seems to reflect concerns about the replaceability of white-collar office jobs due to AI advancements. Other reasons included ▲ being able to work without worrying about retirement age (8%), ▲ relatively flexible use of time (6%), and ▲ less stress from organizational life (4%).