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The trucking sector suffered a significant net loss in August from which it never fully recovered.
Last year, the freight transportation industry experienced a recession as a consequence of the country’s economic situation. This slowdown had a negative impact on various sectors related to the transportation of goods, affecting both employees and employers, and particularly influencing hiring and retention rates. The trucking sector suffered a significant net loss in August from which it never fully recovered.
According to the latest December figures from the Bureau of Labor Statistics, over 3,000 new jobs were added to the economy in the trucking sector. Despite marking the seventh monthly increase in 2023, the year concluded with an overall loss of jobs in the trucking industry.
Throughout 2023, the trucking industry saw a significant decrease in employment, with nearly 21,000 losses. This contrasts with 2022, during which the sector experienced a notable increase, generating around 61,000 new jobs.
In August, the trucking sector lost almost 31,000 jobs following the bankruptcy of Yellow Corp. The following month saw the addition of 14,000 jobs in the sector, the largest monthly increase in over a decade. Despite the rebound, employment quickly stabilized, with an increase of only 16,100 jobs since August.
The net loss in the transportation sector was primarily attributed to a significant decline in the courier subsector, which experienced a reduction of over 32,000 jobs. Overall, the transportation industry saw a decrease of 62,700 jobs in 2023.
Overall within the transportation industry, 216,000 jobs were created across all sectors in 2023, maintaining the unemployment rate at 3.7%. In comparison, 2022 had an unemployment rate in transportation and material-moving occupations of 5.4%.
Despite a decrease in industry wages in November, the average weekly earnings for transportation and storage workers increased by $15.43. In comparison with December 2022, hourly earnings increased by $1.67.
It is anticipated that the transportation industry will start the first quarter of 2024 on stable ground, providing the opportunity for new hires with competitive salaries.
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