A Lightcast study found a critical shortage of 1.3 million skilled trades workers in the U.S., with approximately 2.1 million job openings annually and only three job openings for every person completing relevant training programs. Skilled trades represent 20 million jobs offering 31% higher wages than non-degree occupations, strong job security, and low automation risk.
- The U.S. faces an estimated 1.3 million skilled trades worker shortage, with employers posting 2.1 million annual job openings.
- Skilled trades jobs pay a 31% wage premium (approximately $13,000 more annually) compared to other non-bachelor's degree occupations.
- More than 70% of skilled trades occupations have low AI exposure scores below 30%, offering high job security and minimal automation risk.
- Retirements account for roughly 40% of annual openings, with over one-quarter of skilled trades workers age 55 or older, intensifying replacement demand.
- Lightcast defined skilled trades as 135 hands-on occupations requiring specialized education, training, certification, or apprenticeship but no four-year degree.
Lightcast introduced new framework that defines skilled trades as hands-on, in-person occupations that do not require a four-year degree but do require specialized education, training, certification, apprenticeship, or experience.
The resulting list of 135 occupations provides a practical foundation for studying and strengthening this critical workforce.
“The impending lack of skilled trades workers has been a resounding issue in our economy for years,” says Ron Hetrick, principal economist at Lightcast and a contributor to the report. “These are people that we rely on every day to create new buildings, maintain our infrastructure, and thousands of other tasks that many of us often take for granted. Now that we have a clear, workable definition for understanding which workers fall into this category, we can understand the supply and demand trends affecting these workers and lay the foundation to bring more workers into these jobs in the future. They’re desperately needed now, but critically needed later.”
Key takeaways:
● Approximately 20 million U.S. jobs are in the skilled trades, representing 9% of total employment.
● Employers face an estimated 2.1 million skilled-trade job openings each year.
● There are roughly three job openings for every person completing a relevant training program, creating an estimated talent gap of 1.3 million workers.
● Seven of the 10 most in-demand skilled-trade occupations already face significant labor shortages.
● Retirements account for roughly 40% of annual openings, adding significant replacement demand.
● More than one-quarter of skilled-trade workers are age 55 or older, suggesting demographic pressures could deepen the talent shortage.
● Skilled-trade jobs pay a 31% wage premium (or approximately $13,000 more annually) than the median for other occupations that do not require a bachelor's degree. Roughly one in three skilled-trade workers move into a manager or executive role as their next occupation.
● More than 70% of skilled-trade occupations also have an AI exposure score below 30%, demonstrating high job security and low risk of automation.
