The Blubber

BlackRock CEO Larry Fink is increasingly concerned about the U.S. economy's future, particularly regarding inflation and potential workforce shortages caused by mass deportations. His concerns were significant enough that he raised them directly with the White House.

"I've even told members of the Trump team that we're going to run out of electricians needed to build out AI data centers. We just don't have enough," Fink said while speaking at CERAWeek, an S&P Global energy conference in Houston.

Though the rise of AI-driven technologies like ChatGPT may make an AI-focused future seem inevitable, this vision depends heavily on expanding data centers. Electricians play a critical role in constructing these facilities, making them essential to the tech industry's growth.

The U.S. Department of Energy projects that data centers could consume up to 12% of the nation's electricity by 2028, a steep increase from the 4.4% recorded in 2023.

According to the U.S. Bureau of Labor Statistics, demand for electricians is expected to grow by 11% over the next decade. However, the industry faces significant challenges, including a large number of union electricians nearing retirement and over 100,000 immigrant workers who fill critical electrical roles. If mass deportations proceed, the labor shortage could worsen, impacting industries reliant on a stable and skilled workforce.

"Are we going to have enough workers?" Fink questioned.

The answer appears bleak. A global labor shortage is already unfolding, with more job openings than available workers. Fink argues that "nationalistic policies" — like the Trump administration's efforts to deport undocumented immigrants, many of whom are vital to the workforce — could further strain the U.S. labor market and slow innovation in sectors like technology.

Still, there may be a glimmer of hope as younger generations take notice.

Gen Z: Answering the Call for Skilled Trades

While many Gen Zers initially dreamed of working for top tech companies like Apple, Google, or Microsoft, changing industry dynamics — including layoffs, hiring freezes, and a cultural shift in Silicon Valley — have prompted some to consider alternative career paths.

A survey found that 55% of Gen Zers are open to pursuing a career in the skilled trades. Additionally, enrollment in vocational programs at community colleges surged by 16% in 2023, reaching the highest level since the National Student Clearinghouse began tracking data in 2018.

Skilled trade careers offer various benefits, including the potential to earn high salaries — often outpacing the earnings of many four-year college graduates — without the burden of significant student debt or fears of job displacement by AI.

Social media platforms have also played a role in highlighting the appeal of trade careers. In a popular "Salary Transparent Street" TikTok video, two union electrical apprentices shared their experience: "You get paid to go to school, you get paid when you're at school, and when we graduate, we'll make $109,000 a year."

As the demand for AI data centers grows, a new generation of workers entering the skilled trades may prove essential to bridging the gap and supporting the industry's expansion.