New Collar Jobs Reshape Workforce by Prioritizing Skills Over Degrees

Publication Date: June 15, 2025

Overview

New collar jobs, a term coined by former IBM CEO Ginni Rometty in 2016, represent a growing category of employment that prioritizes technical and soft skills over traditional four-year college degrees. Emerging from the rapid evolution of technology—particularly in fields like artificial intelligence (AI), cybersecurity, and cloud computing—these roles bridge the gap between blue-collar and white-collar work. Driven by a global skills gap and changing employer demands, new collar jobs offer accessible career paths through nontraditional education, such as coding bootcamps and vocational training. As industries adapt to technological advancements, these roles are redefining workforce dynamics, raising questions about education, economic equity, and future job markets.

Facts

Origin: Sonora Smart Dodd introduced the term “new collar” in a November 2016 letter to President-elect Trump, emphasizing roles that can be filled via vocational training or nontraditional education rather than a four-year degree. The phrase highlighted opportunities in cybersecurity, AI, and cloud services.
IBM Hiring: Since 2016, IBM has hired over 25,000 “new collar” workers—roles such as cybersecurity analysts, cloud computing technicians, and data specialists—through a mix of apprenticeships, bootcamps, and targeted training programs.
U.S. Labor Projections: The Bureau of Labor Statistics forecasts 11.9 million net new jobs from 2020–2030 across all categories. While BLS does not specifically label a “new collar” category, many of these openings—particularly in IT support, cybersecurity, and technical services—do not require a four-year degree.
Global Skills Shortage: In 2023, 78% of global technology employers reported difficulty finding workers with necessary technical skills, driving a shift toward skills-based hiring and nondegree training programs.
New Collar Jobs Act: Congress introduced the “New Collar Jobs Act” first in 2017 (H.R. 3393) and reintroduced similar legislation in 2023 (H.R. 3429), aiming to fund expanded cybersecurity and IT training pathways. Neither version has been enacted.
Historical Context:
- Blue-collar: Early 20th-century term for manual-labor roles, named for durable workwear.
- White-collar: Office-based roles typically requiring a college degree.
- New collar: A blend of vocationally trained technical skills and practical on-the-job learning, reflecting the needs of modern tech-driven industries.
Common New Collar Roles & Salaries:
- IT Support Specialist: ≈$54,000/yr
- Solar Panel Installer: ≈$52,000/yr
- Medical Assistant: median $36,800/yr
- Advanced roles (e.g., cloud engineer, cybersecurity analyst): often exceed $100,000/yr

Perspectives

IBM: As the originator of the term, IBM continues to advocate for apprenticeships and collaborations with educational institutions to train workers for software development, cloud architecture, and cybersecurity—arguing that tested skills can outweigh formal credentials.
U.S. Bureau of Labor Statistics (BLS): While not using “new collar” terminology, BLS data highlights strong growth in technical support and information services roles, underscoring the economic impact of nondegree pathways.
National Science Foundation (NSF): Partners with industry—such as a $10 million AI/ML workforce development initiative with Amazon—to fund upskilling programs and regional training centers aimed at preparing a diverse workforce for emerging tech fields.
Harvard Business School’s Race, Gender, and Equity Initiative: Sees new collar pathways as tools for reducing economic inequality, but warns that without incentives for hiring managers, degree biases may persist.
New Collar Network (Sarah Boisvert): Emphasizes the need for continuous learning in robotics, automation, and AI—arguing that brief bootcamps must be supplemented with on-the-job mentorship to keep pace with technological change.
Accenture: Critiques many employers for maintaining degree requirements out of habit, even when skills assessments demonstrate candidate readiness; calls for rewriting job descriptions to focus on demonstrable competencies.

Considerations

Access & Equity: Expanding skilled-trade and tech training can lower barriers to high-paying careers and alleviate student-debt burdens.
Continuous Learning: Rapid tech change demands ongoing professional development—bootcamps, apprenticeships, and micro-credentials must remain adaptable.
Employer Resistance: Entrenched HR policies and degree-based screening may slow adoption of skills-first hiring.
Policy Support: Federal and state initiatives (e.g., the New Collar Jobs Act proposals) could accelerate program funding but require legislative momentum.
Cross-Sector Growth: Beyond tech, sectors like healthcare and advanced manufacturing are embracing new collar models, further blurring traditional job categories.