Trucking employment rises amid tariff tensions

Despite this challenging outlook, the transportation sector has managed to stay afloat, as reflected in the growing workforce.

The latest figures from the Bureau of Labor Statistics (BLS) show that the ongoing trade war between China and the United States has prompted transportation companies to create more jobs in April. A recent article by LandLine, based on BLS data, indicates that April marked the fourth consecutive month of growth in truck driver employment.

In recent months, the transportation industry has been marked by uncertainty, largely due to the looming threat of tariffs and an escalating trade conflict with China. Nevertheless, despite this challenging outlook, the sector has managed to stay afloat, as reflected in the growing workforce. The increase in job creation suggests that both shippers and receivers are making efforts to adapt and push forward.

The trade war’s impact on transportation jobs

Since October of last year, employment in the trucking sector has risen by approximately 10,000 jobs, with the majority of that growth occurring in March. This spike was largely driven by anticipation of tariffs that were set to take effect on April 9 as part of the ongoing trade war. However, President Trump implemented a 90-day suspension of those tariffs, giving businesses additional time to prepare. As a result, this temporary pause led to increased demand for freight transportation in April.

Despite the reprieve, the trade war continues to affect international trade. Exports and imports between the United States and China have declined significantly, potentially putting downward pressure on trucking employment in the coming months—especially if the tariff suspension is not extended. Industry experts warn that the ongoing economic uncertainty could prompt carriers to keep drivers on standby in case of a sudden surge in demand.

Despite these fluctuations, total employment in the transportation sector increased by 29,000 jobs in April, according to the BLS. This growth included sub-sectors such as warehousing and warehousing that saw 9,800 more jobs, courier with an increase of 8,400, and air transportation with 2,900. In contrast, shipping lost 300 jobs, and railroad employment was virtually flat. This overall increase reflects reactions to trade tensions and expectations of changes in demand.

Wage growth in the industry

Wages in the industry also saw gains. The average weekly earnings in the transportation and warehousing sector increased by nearly $12, reaching $1,214.79. Hourly earnings rose by more than $0.90 compared to the previous month.

More broadly, the U.S. economy added 177,000 new jobs in April—far exceeding forecasts. Economists interpret this growth as a sign of the U.S. economy’s resilience, suggesting the Federal Reserve is unlikely to cut interest rates in the near term.

The national unemployment rate remained at 4.2%, while in the transportation sector it fell to 3.6%, an improvement over last year, though still above pre-pandemic levels. However, the unemployment rate in material-moving occupations rose to 6.1%, highlighting the uneven nature of the job market recovery across different areas of the sector.