Trucking Employment Gains in July
Trucking employment saw a moderate increase in July, adding over 3,000 jobs, following a rise of more than 6,000 in June. Although this growth is modest compared to previous years, it marks a recovery from the declines experienced during the pandemic peak. Updated figures indicate that May recorded a loss of 1,800 jobs, a revision from an earlier reported decline of over 3,000.
Historical Context of Trucking Employment
The trucking sector faced a net loss of 42,500 jobs in 2020. However, this decline was not the most severe; the industry lost over 100,000 jobs in 2009, and 76,500 jobs in 2008 amid the Great Recession. Additionally, more than 49,000 jobs were lost in 2001 during another recession. Currently, trucking employment has increased by nearly 13,000 jobs since the end of 2020, showing a marked recovery compared to the more than 85,000 job losses seen at this time last year.
Impact of the Pandemic on Trucking Jobs
The pandemic significantly impacted trucking employment, erasing five years of job growth. The hardest hit was in April 2020, which saw extensive business closures due to nationwide stay-at-home orders. Following that, May 2020 marked the start of nine consecutive months of job increases, illustrating a recovery trend. Recent employment numbers have returned to levels last seen in May 2018, after dipping to levels comparable to fall 2014.
Wage Trends in the Transportation Sector
According to an analysis by online freight network Convoy, wages in the transportation sector are rising quickly. However, this rapid wage growth might suggest that the trucking industry is struggling to attract new drivers. Aaron Terrazas, Convoy’s director of economic research, explained that while strong wage increases could indicate competitive bidding for existing workers, a combination of slower wage growth and payroll increases might signal an influx of less experienced labor.
Transportation Sector Job Growth
The broader transport sector experienced a significant gain of nearly 50,000 jobs, a notable increase from the previous month’s reported growth of nearly 11,000 jobs, which has now been revised to almost 20,000. Most transportation subsectors saw job increases, with transit/ground passenger transport leading at 18,800 jobs, followed by warehousing/storage with 10,700, and courier/messenger services contributing an additional 8,100 jobs. However, minor declines were noted in rail, water, and scenic transport.
Yearly Employment Trends in Transportation
Last year, the transportation sector lost nearly 93,000 jobs, though earlier years like 2009, 2008, and 2001 saw worse declines. So far in 2021, the sector has gained over 114,000 jobs, recovering from the significant losses of more than 375,000 jobs experienced at this time last year due to the pandemic. The average hourly wage for transportation and warehousing workers rose to $26.88, reflecting an increase of 23 cents from the previous month, and $1.52 compared to July 2020.
Current Unemployment Rates
The unemployment rate for transportation and material-moving occupations remained steady at 8.6% since June, down from over 15% during the pandemic last year. Overall, the national unemployment rate dropped by 0.5 percentage points to 5.4%, following the economy’s addition of 943,000 jobs in July. This figure, however, remains 1.9 percentage points higher than pre-pandemic levels in February, although it has significantly improved by about 9.5 percentage points since April 2020.
