AI driving more enrollment in trade schools? How people are beating the bots

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KCBS Bloomberg Tech and Business Report 5 min 5 chapters transcribed 4 days ago
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Unknown 0:00
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Alisa Clancy 0:30
It's time now for our daily tech and business report. Today we're joined by Bloomberg's Victor Sweezy. AI in the workplace has investors placing their bets on trade schools, thanks to a perception that blue collar work can weather an automated tech inf infiltration. Victor joins us on the KCBS Ring Central newsline. Thanks for joining us. Thanks for having me. It's
Victor Swezey 0:54
good to be here.
Alisa Clancy 0:54
Yeah, Victor, so tell us um when did this trend start to pick up? I think I noticed it about six months ago, you know, as people are starting to get out of college and are not finding the jobs because AAI is taking those entry level jobs. Uh when did it start?
Victor Swezey 1:11
Yeah, I think this has been a really pronounced trend over the last six months. It it did pick up, you know, over over the over the year before that. But over the last six months we can see a couple of um a couple of trade school stocks like Lincoln Technical, uh Lincoln Educational Services, Universal Technical Institute that are that are up and Lincoln especially is having a a really incredible year. It's up seventy one percent over the last six months. Um and And uh yeah, that that that wasn't normally what was expected out of these these kinds of trade school stocks.
Alisa Clancy 1:41
Yeah. So what kinds of uh tech schools, trade schools are uh benefiting benefiting from this?
Victor Swezey 1:48
Yeah, so on the on the investor side, I mean these are vocational schools.

How did the conversation shift to AI’s impact on the job market and the rise of trade‑school investing?

Victor Swezey 1:53
They're for profit companies that teach things like uh HVAC repair, welding, uh being an auto mechanic, those kinds of really traditional trades. Um th th th th those are typically what they teach at at campuses across the country.
Alisa Clancy 2:07
I think it's so funny on this on this article it says for the last fifty years every parent in America was saying to their kids, You're not gonna be an auto mechanic, you're going to college I think that's really great. Things have changed, huh?
Victor Swezey 2:19
Yeah, things things have changed. I think a lot of the jobs that were regarded as safe, you know, those i i there was this kind of uh consensus that, you know, everyone should get a four-year degree if possible. That was the best thing to do with your education. And now I think with with the rise of AI chatbots and now AI agents, it's really changing the calculation around what's seen as a safe job.
Alisa Clancy 2:40
Yeah, and going to college is so darn expensive and elitist and all of this other stuff.
Victor Swezey 2:46
Absolutely. Um, yeah, you know, and and you know, some of those some of those entry level jobs like, you know, a paralegal, a coder, you know, a l a lot of those kinds of jobs w that that that were seen as, you know, a a ticket to social mobility out of college, they they don't look so secure anymore.
Alisa Clancy 3:03
Mm. So are there any white collar positions not really affected by this?
Victor Swezey 3:10
Um I think that's you know, that's still kind of uh the the the market and and sort of the labor market is still kind of uh shaking that out. But you know, I think in general uh the the trend seems to indicate that that i i it's less about jobs and more about tasks.

When did investors notice the surge in trade‑school stocks and which companies are leading the trend?

Victor Swezey 3:26
So if you d if you break down the jobs into tasks, any any job that has a lot of kind of repetitive tasks uh is seen as sort of more vulnerable to automation, whereas jobs that require more kinds of critical thinking skills, those are seen as maybe being safer. But that's kind of a problem for entry level jobs across a lot of industries.
Alisa Clancy 3:45
Yeah, and you know, everybody's gonna need a plumber sometime.
Victor Swezey 3:49
Exactly. HVAC repair, plumbing, car mechanic, you know, those aren't going anywhere.

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