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The New-Collar Workforce Is Here — Is HR Ready?

By Dr. Kate Hill

There’s a new kind of worker in town and they are redefining the future workforce. HR professionals have long known that having a college degree is not the only ticket to a successful career. However, technology-driven transformations to employee work factors have driven firms to coin the term “new collar worker,” describing a rapidly rising classification of jobs that require a specialized set of technical skills attained through non-traditional forms of education, such as certifications and apprenticeships. The post-remote work environment of 2025 is fast becoming known as the beginning of the age of the new collar worker, with firms like Apple, Bank of America, Cleveland Clinic, Delta Airlines, Google, and Tesla hastily creating new collar jobs with specialized workplace factors integral to modern technology, healthcare, advanced manufacturing, and logistics industries. The widespread success of these highly specialized workers is increasing the bottom line of innovative companies and reshaping economies, remaking talent searches, and shaking up traditional HR processes. This pivotal shift and the focus on specialized technical skills have profound implications for HR practitioners. As we enter this new collar worker era and industries continue to digitize and automate rapidly, HR must adapt to a flexible, skills-based workforce by reexamining historical approaches to recruitment strategies, performance management, developmental training, and organizational culture and structures.

The Expanding Skills Gap

Historically, a college degree was considered the gateway to a profitable and long career, but modern workforces have challenged this assumption, particularly since the demise of the company pension. Today, skyrocketing tuition costs and unending student debt are forcing new generations to reconsider the need for and value of a degree. A recent Harris Poll revealed that half of Generation Z employees contemplate skilled trades over traditional college pathways and are turning to certification programs and on-the-job training to transition into new roles. According to Harvard Business Review (HBR), 41% of U.S. adults report getting a certificate that would instantly qualify them for an in-demand job over a college degree. Many employers now claim that jobs do not require the theoretical knowledge gained by universities but instead require hands-on experience that is attainable through other educational and technological outlets at a fraction of the cost.

Additionally, the rapid acceleration of automation and AI is reshaping nearly every industry. While AI has already taken over repetitive tasks and rapidly shifted the workplace skillset, it is predicted to replace even more essential human workplace skills, such as those required by cybersecurity analysts, IT specialists, healthcare techs, and skilled merchants. Academic research suggests that the combination of AI and the COVID-19 pandemic has expedited the new collar transition by exposing vulnerabilities in supply chains, employee access, healthcare infrastructure, and digital security.

The Bureau of Labor Statistics predicts that between 2020 and 2030, 60% of new jobs will be new collar occupations. Across the nation, high-profile firms, like Aon and Walmart, are removing degree prerequisites for many job roles, focusing instead on specialized skills, certificates, and practical experience. According to HBR, there are more than 600,000 openings for manufacturing jobs in the U.S., and more than three million skilled trade jobs are expected to go unfilled by 2028.

The question we need to answer is if this employment chasm is driving the employers who struggle with filling vital positions to innovatively capitalize on the opportunity created by millions of skilled workers overlooked due to college degree requirements. Research suggests that this expansion of the available talent pool is key to firm survival in an economy where many relevant technical skills outweigh traditional college credentials.

Skills-Based Hiring

The advantages of skills-based hiring extend beyond solely filling job vacancies. HR leaders see the benefits of adopting new collar jobs because they see higher retention rates, expanded talent diversity, increased employee engagement, and greater morale. By removing the barrier of having a college degree, firms can access a broader range of talented candidates from all walks of life, including veterans and underrepresented backgrounds, with practical skills obtained through micro-credential programs and company-sponsored training initiatives. A study by the Burning Glass Institute found that workers hired through skills-based HR processes had a 10% higher retention rate than those holding a four-year degree. Further, employers investing in continuous education, apprenticeships, internships, and mentorship incentives merge the skills gaps and create a career growth and advancement culture that helps retain top talent.

Florida is at the epicenter of the new collar era and is seeing unprecedented growth in its workforce in industries that rely on skilled employees, including aerospace, clean energy, and infrastructure development. The state expects to create approximately two million new jobs by 2030 due to a surge in demand for skilled labor. Florida employers are responding well to this transition by partnering with technical colleges, trade schools, and internship programs to establish talent channels. The Florida Chamber of Commerce and CareerSource Florida have launched several initiatives to connect job applicants with new collar job opportunities, while other companies are taking advantage of statewide grants and labor development programs to upskill and strengthen their workforces for the future. According to Florida Senator Joe Gruters, “The future of work is evolving, and Florida is ready to lead. By partnering with forward-thinking HR leaders from the private sector, we’re crafting agile training models that align with real-world demands. New collar jobs don’t just fill positions — they build careers, elevate communities, and keep Florida at the forefront of a competitive global economy.”

HR and the New Paradigm

For HR practitioners, adjusting to this new workforce paradigm requires reevaluating historical HR methodologies, starting with developing hiring strategies focusing on skills-based recruitment efforts. HR must reevaluate job titles and role requirements, removing degree prerequisites, and emphasizing essential skill competencies required for the job. But this change isn’t just about hiring, companies must also invest in current employee development and continuous learning programs that will upskill existing employees and promote internal mobility.

This adjustment can be accelerated by developing collaborative partnerships through community outreach programs, growing talent and employee pipelines, and using AI tools.

AI platforms like Eightfold AI and HireVue use AI-driven talent intelligence to identify transferable skills, assess non-traditional credentials and certifications, and match candidates to roles based on potential rather than pedigree. Pymetrics applies neuroscience-based games and AI to evaluate soft skills and cognitive traits, helping HR assess aptitude across diverse talent pools. Tools like Rezi and Skillate modernize resume screening with AI that identifies unconventional learning methods and unique work experiences.

For internal mobility, Gloat and Fuel50 offer AI-powered talent marketplaces that help align employees’ growing skills with evolving opportunities to foster career growth without reliance on college-only pathways.

Encouraging a culture that values a mix of educational and skills-based backgrounds and experiences will help firms uncover potential candidates through various paths outside of a traditional degree. Tracking key performance metrics will help ensure that skills-based hiring processes deliver successful results. These adoption tools, techniques, and strategies can drive HR leaders to future-proof their organizations and build a thriving workforce in the evolving labor market.

Roadmap to Success

Having a new collar occupational roadmap is a critical tool for HR professionals navigating the shift to successfully attracting candidates based on skills and competencies and uncovering the true potential of a modern workforce.

The movement toward new collar jobs is imperative to business and, therefore, vital to HR. The transition to a skills-first economy is underway in Florida, and HR leaders have a unique opportunity to steer this transformation. The question is not whether new collar jobs will dominate the labor market; it’s whether HR is prepared to cultivate the workforce environment that will sustain them. HR should clearly define job competencies, utilize skills assessments, and recognize alternative credentials. AI-driven tools can help match candidates based on competencies rather than educational backgrounds. Redesigning job titles and descriptions focusing on outcomes rather than degree requirements can expand talent pools. Ensuring equitable access to training and certification programs is also critical for workforce development. HR leaders who embrace new collar strategies can not only fill talent gaps and profit coffers, but they can do so while building a more diverse, inclusive, and future-ready workforce.

Dr. Kate Hill is an expert in workplace models and change management, helping organizations and HR leaders navigate evolving workforce demands, including the rise of new collar jobs, employee well-being, quality of work life, and burnout. With over a decade of leadership experience, she has partnered with Fortune 500 companies to implement strategic HR initiatives, optimize team performance, and lead large-scale transformation efforts. As a post-doctoral research fellow at Florida Tech’s Center for Innovation Management and Business Analytics (CIMBA), Dr. Hill explores the intersection of work-life integration, collaboration, and return-to-office strategies. Her research has been presented at leading academic conferences including the Academy of Management (AOM), Eastern Academy of Management (EAM), and the European Academy of Management (EURAM), where she continues to guide organizations through evidence-based insights. She can be reached at [email protected]