State of The Trades: January 2026

State of The Trades: January 2026

Insights from the BlueRecruit team

January 2026

Probably not much of a shock to anyone but given that our government partially shutdown again, the Bureau of Labor Statistics’ Jobs Report is again delayed. But don’t you worry, as always, BlueRecruit is here to save the day with accurate and timely skilled trades jobs data.

In this special January issue of the State of the Trades, we’re focusing on three principal areas:

        1. Employers continue to demand a more educated and highly trained workforce.
        2. The data center boom and electrification of America is driving up both the demand for and the wallet size of electricians.
        3. Severe winter weather caused historically strong job creation in The South to come to a sudden freeze (yes, pun was intended).

Now let’s dive into the data and see how to use it to drive growth for the remainder of 2026.

1. Employers Demand a More Educated Workforce

  • 21% of employers are requiring new hires to have completed post-secondary education. This requirement increased by 2% from just the end of 2025 to a new historical high. Given the expansion of domestic advanced manufacturing, growing technology adoption across the trades, and need for workers to understand and utilize Artificial Intelligence (AI), the need for a more educated workforce will unquestionably continue to increase in the coming years.
  • Trade school admissions are surging. Thankfully, Gen Z, the “Toolbelt Generation”, is answering the call. Trade school admissions are historically high with projections estimating a 6.6% annual growth rate till 2030. Roughly 40-42% of Gen Zers are considering or already actively working in the trades.

2. Data Center Construction is Driving the Need for Electricians Across the Country

  • Electricians were the most in-demand trade workers in January. Their average hourly compensation in January increased $1.33 phr compared to Q4-2025.
  • There are roughly 3,000 data centers either planned or under construction in the United States. The explosion of AI by companies like Amazon Wed Services and Nvidia is creating demand for not only construction professions like Welders, Masons, and Laborers, but long-term employment opportunities for Electricians and HVACR Technicians.
  • Virginia, Arizona and Ohio are leading data center job creation. It is no surprise that all three of these states ranked in the Top 10 for skilled trades job creation in January. Fun Fact: Nebraska is also a data center construction hot spot!

3. Severe Winter Weather Slowed Job Creation

The effect that snow and ice can have on the economy is incredible (also North Carolina is BlueRecruit’s homebase so we’re a little bias).

  • Until January 2026, North Carolina was a top 3 state for skilled trades job creation for all of 2024 and 2025. Back-to-back weeks of uncharacteristically heavy snow and ice proved too much for a state that lacks much of the snow removal equipment of more northernly states. You know it’s bad in North Carolina when they delay NASCAR by nearly a week!
  • The ice storm rocked Tennessee. While construction demand across The Volunteer State is strong, prolonged power outages will likely result in slower than projected job creation in February.

 

Meet BlueRecruit – Built for the Trades
BlueRecruit is a direct-hire marketplace for skilled-trade workers who want to build their careers and the companies seeking their talent. By eliminating resumes and job posts, BlueRecruit focuses on what matters most: skills, certifications, and experience.

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