At the recent Ford Pro Accelerate event, CEO Jim Farley shared a significant personal insight regarding the ongoing challenges faced by Gen Z and the broader blue-collar workforce. He describes his epiphany as part of his initiative to tackle issues tied to what he calls the ‘essential economy.’
While chatting with Bloomberg’s David Westin at Michigan Central Station, Farley detailed how attending the United Auto Workers strike in 2023 opened his eyes. Conversations with younger employees revealed that many can’t sustain themselves solely on a Ford paycheck. “When I met with my younger factory workers, they said they needed to juggle three jobs,” he explained. Many of these workers also spend time at retail giants like Walmart or Amazon fulfillment centers, resulting in grueling schedules: “You know, I get six hours of sleep and manage three jobs.”
In the short term, Farley emphasized Ford’s commitment to providing fair wages for entry-level positions. On a deeper level, he voiced concerns about a critical shortage in trade roles, particularly technicians. His revelations highlighted the crumbling perception of blue-collar work that once promised stability, pride, and the ability to support a family. Veteran workers at Ford told him, “It’s no longer a career, Mr. Farley. Working at Ford isn’t the career it used to be.”
Farley made these remarks during a high-profile event shouldered by notable figures like JPMorgan CEO Jamie Dimon, who emphasized America’s role as a haven for freedom and democracy. Dimon pushed for greater focus on creating economic pathways that benefit all Americans, urging Farley to resist trends of check-the-box compliance culture.
The Blue-Collar Crisis Unfolds
Farley didn’t hold back regarding the current labor crisis. He highlighted a severe deficit, estimating around 400,000 technicians, alongside a similar count of factory roles unfilled across the nation. “There are plenty of available jobs,” he remarked, mentioning salaries starting at $100,000 that necessitate specific training, adding, “You can’t service a diesel F-150 unless you’ve undergone at least five years of training.” The real issue lies not in a lack of demand, but in the dwindling number of young individuals entering or remaining in these trades.
Transitioning toward another of his recurring themes, Farley discussed the burgeoning needs for labor driven by artificial intelligence and data center construction. He noted that major construction companies view this as an urgent concern. “We keep discussing our data centers,” Farley remarked, underscoring the unknown source of labor required for this critical infrastructure.
Finding Solutions
According to Farley, the falling investment in skilled trades, alongside bureaucratic hurdles, pose significant challenges for the essential economy. He called upon major employers and community leaders to take action, promoting stronger apprenticeship and vocational training programs while expressing frustration over slow federal progress toward prioritizing trade schools.
“I see a lot of proactive thinking coming from mayors and county leaders,” he noted. “They understand the situation, but they’re also facing resource limitations while struggling to execute these projects.” This creates an overarching sentiment of frustration, a prevalent question being, “How do we fix this?”
When discussing how crucial trade schools and apprenticeship initiatives would be moving forward, Farley lamented that not enough momentum has generated in these areas yet to effectively address the current crisis.
This article was originally published on Fortune.com
