Tariffs - From White Collar to Blue Collar to Square One, Again

 Usually, it's a soul-wrenching decision to shift lines of work from white-collar to blue. But it was necessary. And that has been the story, with happy endings until recently, for a number of my clients pushed out by a collapsing sector, cost-efficiency and/or age from their knowledge work career paths. 

They chose to reskill in driving trucks long-haul. That required anywhere from $1,000 to $7,000 investment for training and licensing. But some got their ticket punched if they agreed to drive for that company for two years.

They adjusted. They got out of debt. Eventually they had something left over to put into equities, bonds and certificates of deposit.

Now, just like their previous line of work, the employment security can come to a halt. Financial powerhouse Apollo projects that tariffs could trigger truckers' layoffs by summer. Along with those, of course, could be the empty shelves in retail we recall from Covid times. 

If tariffs continue too many of the laid-off truckers might have to again reskill. Forget white collar. That's imploding.

To retrain in blue collar or pink collar represents another financial investment. For example, courses leading to certification in welding range from $5,000 to $15,000. One community college bills at $21,000. The average cost for licensing in cosmetology is $16,251.

Another option, getting more and more popular, is to start their own business. Where is there a gap in what people need or want?

Meanwhile the terminations of federal workers probably will also entail reskilling. Those counting on landing white-collar positions may have to let go of that magic thinking. Not only has there been a deepening recession in knowledge work. In addition, because of uncertainty companies continue cutting costs.  An easy method is to reduce manpower, both through layoffs and by not hiring.

For those former federal workers it also could make sense to become self-employed. At the end of 1980s, amid the downsizing of Corporate America, we purged middle-aged middle managers had nowhere to go. We became The Generation of Accidental Entrepreneurs. Many of us are still at it.

Overwhelmed by the uncertainty? Special expertise with transitions, reskilling and startups. Complimentary consultation with Intuitive Coach Jane Genova (Text 203-468-8579, janegenova374@gmail.com).