If you're not sure which way to go with your working life – and you like cars – there's now another reason to consider becoming an apprentice. Lonne!
A new analysis from Arbejderbevegelsens Erhvervsråd (AE) shows that skilled workers are now catching up strongly with academics. It marks a significant change in the salary relationship between skilled workers and academics, where the difference between the two groups has been reduced greatly over the past 25 years.
The analysis reveals that skilled workers within i.a. engineering and construction, have seen a dramatic increase in income compared to humanities graduates.
Apprentices can now expect a total lifetime income of almost DKK 17 million, which is a significant improvement compared to previous years. This is an increase of around DKK 3.5 million compared to 25 years ago.
Compared to 1997, when a graduate could expect to earn 71% more than a skilled worker, the latest analysis shows that by 2022 the gap has fallen to 59%.
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Rasmus Lindo Kaslund, analyst at Arbejderbevegelsen's Business Council, believes that this is due to supply and demand factors. With an increasing proportion of academics on the labor market and fewer skilled workers, such as mechanics, there is an increased demand for skilled labour. This has resulted in higher wages for skilled workers, which has reduced the gap between academics and skilled workers.
He notes that the demographic change in the labor market will continue to affect the supply of skilled workers. "In the older generations on the labor market, there are more skilled workers, but they are being replaced by younger generations with more academics and fewer skilled workers," says Rasmus Lindo Kaslund.
This change indicates that income differences are likely to decrease further in the coming years.
The development shows that the traditional path to income through academic education is no longer the only sure way to achieve a high income. Rasmus Lindo Kaslund notes that there is an increased demand for skilled labor in certain sectors, which has led to this change in income differences.
This change in income balance can affect young people's educational choices. With an increasing demand for mechanics and other skilled workers in engineering and construction, more young people may choose vocational training as an attractive alternative to academic studies. This can help address the shortage of skilled labor in certain sectors and ensure a more balanced workforce in the future.
Office graduates have also had significant improvements over humanities graduates, further underscoring the changing dynamic between trades and academics. While graduates can still expect a higher lifetime income, this analysis shows that skilled workers are increasingly catching up with and in some cases surpassing graduates.
