Jobs Report: Trucking Sector Continues Downward Trend; Warehousing Faces Significant Decline

In the latest jobs report from the Bureau of Labor Statistics, trucking employment continues to trend downward, with a particularly notable decline in the warehousing and storage sector.

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In September, truck transportation jobs totaled 1,543,600, marking a decrease of 700 from the revised August figure of 1,544,300. The August figure was adjusted upward by 800 jobs, resulting in September's total being 1,400 fewer than in July.

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Truck transportation employment peaked this year in March at 1,556,400 jobs and has since declined by 12,800. Mazen Danaf, an economist at Uber Freight, highlighted that the ongoing impact of the Yellow bankruptcy is influencing these monthly numbers. He noted that overall job growth since before the pandemic has been minimal, at just 1.8%. However, the less-than-truckload (LTL) sector has seen a loss of 21,000 jobs due to the bankruptcy.

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Despite the job losses, LTL pricing has remained stable, as carriers maintain better control over market prices compared to their truckload (TL) counterparts.

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In the warehousing sector, jobs fell dramatically by 11,000 in September, bringing the total to 1,776,600. This marks the second consecutive month of decline following a series of increases earlier in the year. Warehousing jobs had peaked at 1,942,200 in May 2022, driven by a booming freight market, but have experienced significant reductions since then, with declines in 17 of the last 18 months.

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The overall combination of falling truck transportation and warehousing jobs prompted comments from Aaron Terrazas, an economist with experience in logistics. He noted that while the broader U.S. economy appears to be stabilizing, the transportation and warehousing sector remains precarious, suggesting potential underlying issues in the consumer economy.

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Shannon Gabriel, vice president of leadership solutions at TBM Consulting Group, pointed out the increasing competition for transportation roles. She reported a rise in active job seekers in the transportation sector on platforms like Indeed, indicating that employers currently hold the advantage in hiring.

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Additional highlights from the report include:

• Wages for production and nonsupervisory employees in truck transportation have surpassed $30 per hour for the first time, reaching $30.04. The overall hourly wage for all trucking employees, including management, exceeded $30 in February 2023.
• The rail industry continues to struggle, with August employment figures revised down by 900 jobs to 150,300, and an additional decline of 100 jobs in September. Overall, rail jobs are now down 2,700 from a year ago.

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