Trucking news and updates for Friday, Oct. 7, 2022:
Trucking Employment Experiences Significant Decline in September
The Bureau of Labor Statistics published its monthly Jobs Report on Friday, revealing a substantial drop in trucking payroll employment in September, marking the most significant decline since the beginning of the pandemic.
Overall, September signifies a notable turnaround in trends, as illustrated in the accompanying chart. Initially, trucking payroll employment saw a sharp decline at the pandemic’s onset, subsequently rebounding in 2021 to levels above those before the pandemic. After remaining stable through summer 2022, it has now decreased again.
Avery Vise, Vice President of Trucking at FTR, expressed surprise at the downturn, especially given that pre-employment inquiries for CDL drivers in August reached a record high since the program’s inception in January 2020, typically signaling increased hiring activity. Vise hypothesized that the “unprecedented surge in payroll trucking jobs during Q2” may have set the stage for September’s decline, suggesting it could be an anomaly. However, other indicators like diesel usage and intermodal volumes might indicate “weaker-than-expected freight activity.” He cautioned against making broad conclusions based on September’s initial numbers.
It’s important to note that payroll figures do not capture the entire driver population, as owner-operators can confirm. The pandemic has led to a surge of new for-hire trucking firms. Recent reports indicate an increase in owner-operator revenues; however, rising expenses have affected profits, leading some independents to lease with larger companies. Vise pointed out that in September alone, more than 8,200 new trucking companies emerged, slightly surpassing August’s numbers and significantly higher than pre-pandemic levels, potentially influenced by California’s AB 5 law.
“California is witnessing an upward trend in new trucking companies, reaching the highest level since August 2020, which suggests a shift towards brokerage models replacing leased owner-operators,” Vise noted.
Total non-farm payroll employment in the U.S. saw an increase of 263,000 in September, according to the BLS. The average job growth for 2022 stands at 420,000 per month, compared to 562,000 in 2021. September’s notable job gains were primarily in the leisure and hospitality sectors and healthcare.
Georgia Anticipates Major Delays Due to Long-term I-285 Lane Reductions
The Georgia Department of Transportation has announced plans to close one lane of I-285 Eastbound starting Saturday, Oct. 8, as part of the ongoing Transform 285/400 interchange reconstruction project. This closure will be between Roswell Road and Ashford Dunwoody Road for the demolition and reconstruction of bridges at Glenridge Drive, SR 400, and Peachtree Dunwoody Road.
