Days of college ‘over’ as skilled trades get 30% pay bump: Randstad

The days of going to college to pursue a lucrative career are over, as skilled trade workers have seen a 30 percent increase in wages over the past few years, the CEO of the world’s largest recruiting firm told CNBC.

Sander van’t Noordende, CEO of the Dutch staffing giant RandstadIn an interview with CNBC’s “Squawk Box Europe” on Wednesday, he recommended career paths in skilled trades for young people.

“I would say the days of going to college and doing things in the office are over,” Noordende said. “You have to be smarter than that. I think technology, any technology, is still a good career path.

“Skilled jobs are increasing rapidly. I would say you can have a good career and earn good money in skilled trades. It’s definitely a career path,” he added.

Specialized skilled trades positions now offer salaries competitive with traditional office jobs, according to recent data Randstad shared with CNBC; Wage growth has increased by 30% in the US, 21% in the Netherlands, 18% in Germany and 9% in the UK over the last four years.

Mechanics currently earn an average of $79,000 in the Netherlands and $76,600 in Germany; In the wider housing and construction sector in the UK, average salaries rise to over $78,500.

The number of data centres, the specialized facilities powering the AI ​​boom, is growing rapidly and a large physical workforce, including skilled trades workers, is required to support it. This has led to an increase in the demand for trade workers in recent years.

“The digital revolution requires a huge physical foundation,” Noordende previously told CNBC in March. “The debate about AI’s impact on the labor market often focuses on whether purely productive models will replace white-collar jobs. But one critical fact is completely overlooked: AI cannot build its own data centers.”

Major technology companies, including Alphabet, Microsoft, Meta and Amazon, have committed to spending nearly $700 billion in capital expenditures this year to build their own data centers, creating opportunities for thousands of employees.

A Randstad analysis of 50 million job postings in March showed demand for data center workers is soaring between 2022 and 2026, with job openings for robotics technicians rising by 107%, 67% for HVAC engineers and 51% for industrial automation technicians.

Randstad’s latest data has highlighted that wages for entry-level workers with AI skills are up to 25% higher as graduates continue to face employment shortages.

“Artificial intelligence is a fast track to promotions and pay for new entrants to the labor market,” Noordende said. “Provided you combine this with soft skills…softer skills, judgment, collaboration, empathy…it can accelerate your career.”

This premium can be seen most clearly in technical roles such as software development, where entry-level salary in the US rises from $85,000 to $105,000 with additional AI expertise. Meanwhile, according to Randstad data, employees who receive artificial intelligence certification are promoted 3.5 times faster than their peers.

Young people are transitioning to an increasingly competitive job market and struggling to secure roles as AI makes it harder for entry-level workers. Artificial intelligence was mentioned in nearly 50,000 layoffs in the United States this year, according to April data from consulting firm Challenger Gray & Christmas.