The new-collar revolution

The new-collar revolution

The new-world job market has begun to prioritise skills over college degrees, creating an emerging breed of employees joining the workforce.
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Madhuri Kukreja spent two and a half years working at a financial services company as an entry level analyst. It was monotonous work. Besides, she was consumed by anxiety about artificial intelligence (AI) taking her job: the prevalent fear among workers worldwide.

Kukreja decided to move towards a career in tech where job security was better and her enthusiasm about data science though by no means an expert would come useful because of her interest. Upskilling the process of teaching an employee new skills wasn’t easy at first.

During the first three months, Kukreja chose to teach herself taking online courses on coding. Due to lack of prior experience and insufficient knowledge of coding tools, she couldn’t get the results she was hoping for. Her solution was to enrol in an upskilling programme with Scaler, an edtech company which offers skill training and development programmes. The structured curriculum equipped her to earn the necessary technical skills to be a data scientist.

Enter the New-collar Worker. A new industry trend, it is upending known employment notions. The new-collar philosophy prioritises skills over college degrees. For example, a biology graduate who is as good at coding as a White Hat, could be hired for a software development role by IBM. The popular sectors offering new-collar jobs are in tech: big data, cybersecurity, generative AI, coding, machine learning and meditech.

New-collars started as blue-collar workers who lost jobs in the pandemic while white-collar workers kept their jobs and perks, working remotely and safely in their homes. To survive they learned new skills to get better jobs. An unexpected consequence of this is the shrinking of the labour market although blue-collar workers are the heart of the global manufacturing economy. Blue-collar jobs drive 70 per cent of India’s new job growth according to McKinsey & Company.

The growing gap between demand for jobs and availability of workers is a problem companies will have to solve, or adapt to. According to a Foundit report, major companies like Accenture and IBM have already shifted away from hiring based on formal degrees. IBM requires only 29 per cent of their positions to have a formal qualification, while Accenture’s figure is 43 per cent. India’s IT sector is nowhere near, but the new-collar trend has started, albeit slowly: seven per cent of fresh non-tech engineering graduates have got jobs in engineering firms.

The rising trend of new-collar jobs, a term coined by IBM’s former CEO Ginni Rometty is taking the corporate world by storm. The vote is for certifications, vocational training, internships and apprenticeships. Kukreja believes the training she received “at Scaler not only made the concepts easier to understand, but also gave me the confidence to get my dream job as an Associate Analyst at Razorpay. Upskilling taught me that technical skills are not difficult to learn. I realised that small, consistent improvements—even just one per cent every day—can lead to significant change over time. This mindset helped me excel in the course that involved data analysis, machine learning and deep learning among other valuable skills. It instilled in me a sense of discipline and realise the importance of continuous improvement in learning and my career”.

Aparna K, Quantitative Analyst at Paypal, who began her professional journey in a service-based MNC as a software developer, would agree. Over her three-year-tenure, she observed the rapid rise of emerging fields like AI, Blockchain, and others that were reshaping the industry. This inspired her to upskill. “I wanted to align my choice with both my existing skill set and personal interests. I found that Data Science and Business Analytics were exactly what I was looking for,” she says.

She enrolled in a weekend online course with Great Learning.

“I made the tough decision to leave my job and prepare for interviews. My goal was to join a startup, where I could learn and grow through hands-on experience and new challenges every day. Things fell into place, and I secured a role at Mathco, a company that helped me explore various technologies and business domains,” she says. After three years at Mathco, she recently joined PayPal.

Scaler works with over 1,000 organisations, including Microsoft, Amazon, Adobe, Ola, Flipkart, Uber, and Cure.Fit, etc., as their tech recruiter, providing learners with placement opportunities in top tech companies. It has secured jobs for 96 per cent of students in their software development upskill course at Scaler Academy and 83 per cent of learners in the DSML (Data Science and Machine Learning) programme.

Abhimanyu Saxena, Co-founder of Scaler and InterviewBit, says, “Learners from Scaler Academy got a median salary hike of 150 per cent. It was 110 per cent for students of DSML programmes. These figures reflect the high demand for skilled professionals across various industries like e-commerce and fintech, where top software development programme graduates are being hired for an average Rs 48 lakh a year.”

Senior developers and data scientists are in high demand, getting average annual salaries of Rs 32.04 lakh and Rs 20.28 lakh. The Indian tech industry, employing over 5.4 million people, is grappling with a widening digital talent gap, according to the India Tech Industry Digital Talent Demand and Supply Analysis 2023 by Nasscom. While digital roles currently make up 36-38 per cent of the workforce, jobs in AI, Big Data Analytics, and IoT have huge demand.

But the supply of experts is below 50 per cent. This gap is expected to widen, since the demand for digital talent is projected to grow to six million by 2028. As a result, the supply gap could widen from the current 25 per cent to 28-29 per cent. The influx of freshers into the industry is expected to help, but re-skilling and upskilling initiatives will need to fill the lacuna.

The Nasscom report emphasises that companies will have to move to being ‘Skill-Based Organisations’, where employee skills is the mantra to get ahead and for the businesses to retain workers. Solutions are needed to close the digital talent gap: adopt innovative talent-sourcing methods and collaborate with the government, educational institutions, and skills councils. The Global Skills Gaps Measurement and Monitoring Report of ILO 2023 says that 47 per cent of Indian workers, especially 62 per cent of women are under-qualified for their jobs.

What’s fuelling the rise

The demand for new-collar jobs is being driven by the rapidly changing skill landscape, as highlighted by the World Economic Forum (WEF) Future of Jobs Report 2025. On average, 39 per cent of the existing skills of workers will become obsolete or transformed over 2025-2030. In fact, 59 out of 100 workers globally will require training by 2030 to keep pace with evolving job demands. Technological advancements, particularly in AI and big data, are vanguards of this trend. Alongside technical skills, employers value creative thinking, resilience, flexibility, and a commitment to lifelong learning. These complementary skills are vital for employees to adapt to the fast-paced changes happening in the workplace.

Mandar Chavan, a Business Analyst at Quantum Phinance, says, “Choosing to upskill was a pivotal moment in my career. After completing my BSc in Biotechnology, I realised that the job market wasn’t as promising as I had hoped. My initial struggle with the CAT exam pushed me to explore data science. What drew me to this field was my fascination with how platforms like Google Maps create year-end dashboards.” Due to his non-engineering background, he faced numerous challenges, including mastering SQL and Python. “Ultimately, the investment paid off. The transition was not easy, but my passion for data and a supportive network made all the difference,” he says.

According to the WEF report, 170 million new jobs will emerge by 2030, driven by technological advancements, green energy , and demographic shifts; AI specialists, data analysts, and fintech engineers, will account for 14 per cent of the current workforce losing their livelihood. Vivek Prakash, Head of the Combat Systems department, L&T, witnessed firsthand throughout his 21 years of service in the Indian Navy how critical data analysis is used for enhancing operational efficiency and safety.

“I realised that data-driven decision-making was the future. It sparked my journey into upskilling, and I decided to take the leap. The skills I developed during the programme allowed me to approach problems with a data-driven mindset, which proved invaluable during the interview process and beyond. This ultimately led to my hiring,” he says. Generative AI businesses are both hiring new talent and retraining their current employees.

As highlighted by Coursera data, the demand for AI training has surged globally, with India and the US leading the charge in enrolment numbers, reinforcing the critical role of skills development. According to Sanketh Chengappa KG, Director of Professional Staffing at Adecco, a HR solutions company, firms are shifting their hiring strategies by investing in AI and data-driven hiring tools, besides hiring people from other countries for remote working. Local talent is being developed simultaneously.

Apprenticeship and internship programmes are based on competency of candidates. Chengappa says, “Some of the most prominent new-collar roles emerging today are Robotics technicians, UI/UX designers, Data Analysts/scientists, Cybersecurity Analysts, Software Developers, Cloud Computing Specialists and Healthcare Technicians among others.”

Skill specialisation looks good on resumes while applying for such positions. Non-traditional education methods are in demand such as coding bootcamps—an intensive, short-term training programme designed to teach specific skills quickly and effectively, prioritising certifications.

According to Kapil Joshi, CEO of Quess IT Staffing, 72 per cent of hiring managers believe bootcamp-trained candidates perform better than those with traditional four-year degrees, underscoring a paradigm shift in workforce recruitment strategies. Organisations like Tata Motors and Flipkart have in place effective strategies for skill-focused hiring. Tata Motors emphasises workforce readiness through extensive internships, while Flipkart’s GRiD hackathon showcases the power of skill-based assessments in talent acquisition.

Saxena is all for hands-on learning through live projects, case studies, and internships. His advice: opt for upskilling programmes that integrate practical experiences or seek opportunities like open-source work and internships, to effectively build real-world skills. Open-source work refers to participating in projects or software that can be used by the public, typically in coding or software development; anyone can view, use, modify, and distribute the code. This helps job seekers get practical experience, improve their skills, and build a portfolio, often collaborating with people from around the world.

What companies are doing

Chengappa highlights several corporate strategies to skill employees and prepare them for new-collar jobs. These include company training programmes in Machine Learning, University and AWS Training and offering certification for cybersecurity, data science, and cloud computing jobs. There are scholarships for underserved communities to learn emerging technology.

Companies and educational institutions are working together to incorporate certifications and practical training into their curriculums. Online learning platforms such as Coursera, OpenAI, LinkedIn, and in-house courses are open to workers, while internal upskilling programmes for the existing workforce in AI and data analytics are being implemented. IBM, Amazon, Microsoft, Tesla, Adobe, and Bank of America, are investing in upskilling programs in cybersecurity, cloud computing, AI, and machine learning, readying their workforce for engaging the evolving economy.

“The world has moved towards the knowledge economy. Every employee is an asset, and their skills must be mutually interchangeable. They have to be relevant and valued by clients. IBM focus on ‘Skills First’ hiring: a right mix of in-demand skills over specific degrees to work in technology’s fastest-growing areas such as AI, hybrid cloud, and automation,” says Thirukkumaran Nagarajan, Vice President and HR Head at IBM India/South.

More than just Tech Speak

The demand for qualified medical coders is growing. Omega Medical Coding Academy (OMCA) offers comprehensive, skills-based training and talent development programmes. Medical coders ensure that patient information is accurately translated into standardised codes which are used for billing, insurance claims, and maintaining healthcare records. “We train candidates in their preferred domains to acquire the necessary technical expertise.

Practical skills like communication, typing proficiency, and job-related simulations are part of the programme,” says Megalan David J, General Manager—Talent Acquisition, Omega Healthcare, which provides healthcare outsourcing services. “Our recruitment strategy targets individuals with diverse backgrounds, including those with paramedic and non-paramedic experience.

Training curricula are tailored to individual knowledge levels in anatomy and physiology, with paramedic graduates receiving specialised instruction in niche areas such as Inpatient Diagnosis Related Groups (IP-DRG), Surgery, and Anaesthesia. Graduates from non-technical backgrounds are trained in the basics of coding,” he adds. Omega Healthcare offer internships offering get real-world experience. ‘Train & Hire’ programmes prepare candidates for specific roles.

There is also campus hiring for placements. The company works with NGOs and training institutes in skill development programmes, especially for underserved communities, ensuring broader access to employment opportunities. Sana, a pharmacy graduate, struggled to find a suitable job in healthcare. Employers wanted hands-on skills instead of academic qualifications. Omega Healthcare’s skills-focused training programmes came to her rescue.

Sana underwent a comprehensive skills analysis and received targeted training in IP-DRG, Surgery, and Anaesthesia coding. She became qualified for the job after using real-world applications and developing her interpersonal skills. Today, Sana is a medical coder. Reflecting on her journey, she says, “The training built my confidence and prepared me for real-world challenges.”

In spite of all the enthusiasm for skilled workers, businesses and HR managers are running into several road blocks in their hiring strategy. James Neave, head of data science at Adzuna—the world’s most comprehensive job search engine told Forbes, “For as long as many of us can remember, high-school graduates were encouraged to pursue a college degree for financial and psychological security.

That message has been drilled into students’ heads from parents and schools.” No method exists to accurately assess skills that fit the job. Old mindsets that prioritise degrees are stubbornly refusing change. Says Upasana Raina, HR Director, GI Group Holding, “Traditionally, earning a formal degree was seen as proof that a candidate possessed fundamental skills needed for a job and soft skills like teamwork, collaboration, and project management, which are often assumed to be developed during formal education.

In new-collar jobs, assessing these soft skills is the challenge.” Shiv Kumar, Head of Human Resources at Merck India, highlights the need for experimentation despite the risks: “It requires strong risk appetite, which more organisations are embracing now, especially in the technology sector. This is just the start.” Saxena highlights that not all popular trends are valuable or applicable to everyone’s career journey, suggesting that individuals must seek guidance from mentors and senior industry professionals.

This shift towards skill-based hiring is also mirrored in Gen Z’s career preferences. Having moved into the PR sector but lacking prior experience, Dinkel Gogri found her skills served her best. “When I took up a PR job, I realised that skills like communication, leadership, and problem-solving are the cherry on top.” She had previously worked in Client Servicing and Marketing, where big brands were her clients.

Over time, she found the work repetitive. She would often hear talk about PR in the office, but didn’t fully figure what it was about. “I realised that if I was losing interest in my job so quickly, it might be a sign that this role isn’t the right fit for me,” she says. As a Gen Z learner, Gogri finds hands-on methods like apprenticeships and job shadowing—observing a day in the life of someone else’s role—effective.

Forbes notes that presently there are nearly 15 million freelance workers in India working in IT, HR, and design—a number growing by about four million a year. The millennials choose gig contracts over regular jobs. A report by Accenture on the American job market pointed out that degree inflation—the rising demand for a four-year college degree for jobs that previously did not require one—is making the US labour market more inefficient.

Sanyam Chhoriya, the founder of SUPER24 and creator of the 7,000-plus member hiring network Let’s Grow Together recalls, “My ability to learn on the job and apply technical concepts outweighed any need for formal credentials.” He emphasises how practical experience shaped his path. In his first year of college, he joined eight clubs and societies, which built him a strong network.

In his second year, he attended startup founder meetups, had a live conversation with ace IT celebrity Ankur Warikoo, and started WhatsApp communities to expand his connections. This solid network played a crucial role in him getting hired as Event Head for the INC, leading a team of 250 members in his third year.

“My experience managing a Rs 13-lakh budget and leading a 250-member team during a college tech fest further honed my leadership and organisational skills,” Chhoriya notes. Let’s Grow Together has facilitated over 300 placements. In one standout case, a college student secured a high-profile Founder’s Office role at a Dubai-based startup thanks to her multitasking ability and entrepreneurial mindset.

The best thing about new-collar jobs is that they always stay new, due to the constantly changing nature of work experience.

Code Decode

Sana, a pharmacy graduate, struggled to find a suitable job in healthcare. Omega Healthcare’s skills-focused training programmes came to her rescue. She underwent a comprehensive skills analysis and received targeted training in IP-DRG, Surgery, and Anaesthesia coding. Today, She is a medical coder.

Upskill Reskill

Aparna K, Quantitative Analyst at Paypal, began her professional journey in a service-based MNC as a software developer. Over her three-year-tenure, she observed the rapid rise of emerging fields like AI, Blockchain, and others that were reshaping the industry. This inspired her to upskill. She enrolled in a weekend online course with Great Learning. Things fell into place, and she secured a role at Mathco. After three years at Mathco, she recently joined PayPal.

Going the extra mile

Madhuri Kukreja spent years working as a Financial Analyst, but as time passed, her role began to feel monotonous. She decided to make a bold career change, and enrolled in an upskilling programme. The structured curriculum not only equipped her with the technical skills she needed but also instilled a disciplined approach to problem-solving. It gave her the confidence to secure her dream role of an Analyst Special at Razorpay.

Finding his niche

After completing his BSc in Biotechnology, Mandar Chavan realised that the job market wasn’t as promising as he had hoped. His initial struggle with the CAT exam pushed him to explore data science. Ultimately, the investment paid off when he secured a role as a Business Analyst at Quantum Phinance.

United collars of work

Gold Collar: It refers to young, low-wage workers who invest in conspicuous luxury. The term also alternatively refers to highly skilled professionals in high-demand fields

White Collar: It refers to a salaried professional, typically general office workers and the management staff. This involves obtaining, analysing, and distributing information rather than goods or products

Blue Collar: It refers to a member of the working class who performs manual labour and either earns an hourly wage or is paid a piece rate for the amount of work done

Pink Collar: It also refers to a member of the working class who performs in the service industry. They work in positions such as waiters, retail clerks, and other positions involving relations with people

Green Collar: It refers to a wide range of professions relating to the environment and renewable energy, but can also refer to military personnel

Black Collar: It refers to manual labourers in industries in which workers generally become very dirty. The term is also used to describe workers in illegal professions

Open Collar: It refers to people who don’t attend a regular go-to office. They work from home, via internet, or are freelancers

No Collar: It refers to artists and ‘free spirits’ who tend to privilege passion and personal growth over financial gain

Bootcamps focus

Bootcamps focus on practical, hands-on learning to prepare participants for the real world. They are popular in fields like coding, data science, digital marketing, and project management. They cater to people looking to upskill, switch careers, or gain specific expertise.

These programmes typically last a few weeks to a few months and lead to job readiness or skill mastery. Certifications are credentials awarded after completing a course or passing an exam on proficiency in a specific skill or knowledge.

They are often industry-recognised and are formal validations of expertise. Certifications can range from general skills (e.g., project management or IT fundamentals) to specialised areas (e.g., AWS Certified Solutions Architect or PMP Certification). They enhance a professional’s credibility and are frequently required or preferred for certain jobs. Certifications are given at bootcamps, online platforms, or professional organisations.

Be the change

To successfully integrate skill-based hiring into their organisations, HR leaders must adopt thoughtful strategies that foster a culture of adaptability, innovation, and inclusivity

Lead by Example

Kumar emphasises that HR teams should demonstrate the value of skill-based hiring within their function before advocating for broader adoption. “Walking the talk is crucial,” he says. By showcasing its success internally, HR can build credibility and inspire confidence in this approach

Build a Risk-Tolerant Culture

Organisations need to create an environment where risks associated with non-traditional hires are embraced. “HR leaders must educate business leaders on the importance of absorbing risks and treating failures as opportunities to learn,” Kumar notes. This mindset encourages innovation and a willingness to experiment

Redefine DEI

True diversity extends beyond conventional definitions. Kumar points out the need to expand DEI frameworks to include individuals with unconventional educational and professional backgrounds. “Recognising skills over traditional credentials fosters diversity of thought and capability,” he explains

Expand Talent Pools

According to Raina, leaders should proactively partner with bootcamps, vocational centres, and other non-traditional learning platforms to access diverse talent pools. This approach ensures opportunities for underrepresented groups while addressing critical skill gaps

Invest in Assessment and Development Tools

Organisations must utilise advanced tools to evaluate both technical skills and essential soft skills, such as collaboration and problem-solving, which are often overlooked in non-traditional training paths. Raina also stresses the importance of investing in training programs to bridge soft skill gaps, ensuring new-collar employees are equipped for success

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