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

The days of going to college to secure a lucrative career are over, as skilled trade workers have seen a 30% wage bump in the past few years, the CEO of the world’s largest recruitment firm told CNBC.

Sander van’t Noordende, CEO of Dutch staffing giant Randstad, recommended the skilled trades career track to young people in an interview on CNBC’s “Squawk Box Europe” on Wednesday.

“I would say the days of going to college and doing something in an office, they are over,” Noordende said. “You’ve got to be smarter than that. I think technology, any kind of technology, is still a good career trajectory.

“The skilled trades are coming up rapidly. I would say you can make a good career and good money in skilled trade. That’s definitely a career track,” he added.

Specialized skilled trade roles are now offering salaries that compete with traditional office jobs, with wage growth up 30% in the U.S. in the past four years, up 21% in the Netherlands, 18% in Germany, and 9% in the U.K, according to Randstad’s latest data shared with CNBC.

Mechanics now earn an average of $79,000 in the Netherlands and $76,600 in Germany, while in the broader housing and construction sector in the U.K., average salaries reach over $78,500.

The number of data centers — specialized facilities powering the AI boom — is growing rapidly, and it requires a large physical workforce, including skilled trade workers, to support it. This has caused demand for trade workers to surge in recent years.

“The digital revolution requires a massive physical foundation,” Noordende previously told CNBC in March. “The debate around AI’s impact on the labor market often focuses entirely on…whether generative models will displace white-collar jobs. But a critical reality is being completely overlooked: AI cannot build its own data centers.” 

Big tech firms, including Alphabet, Microsoft, Meta, and Amazon, committed to spending nearly $700 billion in combined capex this year to build their own data centers, creating opportunities for thousands of workers.

A Randstad analysis of 50 million job postings in March showed that between 2022 and 2026, demand for data center workers grew rapidly, with vacancies for robotic technicians increasing by 107%, HVAC engineers by 67%, and industrial automation technicians by 51%.

Randstad’s most recent data also highlighted that entry-level workers with AI skills are commanding salaries up to 25% higher, as graduates continue to face an employment drought.

“AI is a fast pass to promotion and pay for new entrants into the labour market,” Noordende said. “Provided that you combine it with social skills…the softer skills, the judgement, the collaboration, the empathy… can fast-track your career.”

The premium can be seen most clearly in technical roles like software development, where entry-level pay in the U.S. jumps from $85,000 to $105,000 with additional AI expertise. Meanwhile, workers who have secured AI certifications are getting promotions up to 3.5 times faster than their peers, the Randstad data showed.

Young people are graduating into an increasingly competitive job market and are struggling to secure roles as AI blights the job of entry-level workers. AI was cited in nearly 50,000 job cuts so far this year in the U.S., according to April data from consulting firm Challenger Gray & Christmas.

However, as employers increasingly demand AI skills and eliminate low-level jobs, there’s also increased interest in human-centered skills. Demand for emotional intelligence and creativity has surged by 173% and 168%, respectively, the Randstad data found.

Noordende explained that it’s “easier” to pick up technical skills, but not everyone is good at communication, empathy, and building client relationships is a more complex skill to master.