Trucking Jobs Show Promising Growth as Market Conditions Improve
Following impactful hurricanes, a significant port strike, and a crucial presidential election, the number of trucking jobs saw an uptick in November, reinforcing the notion that the lengthy freight recession may be approaching its conclusion.
Data from the Bureau of Labor Statistics indicates that nearly 3,000 trucking positions were created in November. This development represented the fifth consecutive monthly growth in 2024 and marked the third increase within the last four months.
David Spencer, vice president of market intelligence at Arrive Logistics, commented to Land Line that the rise in higher-paying spot freight was likely amplified by the disruptions caused by two hurricanes and strikes along the East and Gulf Coasts in October. Moreover, the election of President Donald Trump for a second term has heightened optimism within the trucking sector regarding future economic conditions and freight demand.
Positive Trends Ahead for Trucking Companies
As the peak season approaches, carriers maintain a hopeful perspective. Spencer noted that this year has seen a return to more typical seasonal activities. He mentioned that part of the demand surge may be attributed to unusual imports in anticipation of potential tariffs and the looming threat of another port strike with a union contract set to expire on January 15, 2025.
Overall, evidence suggests that the freight market is recovering. Spencer emphasized, “The data strongly indicates that we’ve passed the lowest point in the freight market, encouraging carriers to begin hiring in light of what appears to be an improved market for trucking in 2025.” He added that shippers seem less inclined to push for further discounts on contract rates, which bolsters confidence for truckload carriers. However, he cautioned that while there are signs of growth, a more substantial, sustained recovery is still likely some time away due to current capacity trends, and he anticipates rates will fluctuate following a typical seasonal pattern through early 2025 unless an unexpected market trigger occurs.
Job Numbers and Trends in the Transportation Sector
Revised statistics have shown a slightly less favorable trucking job situation than previously indicated, revealing an 800 job loss in October (compared to an earlier reported loss of 100) and a revision of September’s figures to an increase of 200 jobs instead of a reported decline of 100.
Currently, trucking jobs are down by 1,400 compared to one year ago, and the industry has seen a reduction of nearly 40,000 jobs since the peak in July 2022. In total, the transportation sector experienced a growth of over 3,000 jobs.
The increase in transportation employment primarily stemmed from a rise in support activities for transportation (up 3,000) and gains in trucking and transit/ground passenger services (up 1,800). However, there were reductions noted in courier/messenger roles (down 2,200), warehousing/storage (down 1,400), and scenic/sightseeing transport (down 900). Other subsectors exhibited little change in employment levels.
Wages across the board declined month over month, with the average weekly earnings for employees in transportation and warehousing dropping by nearly $7 to $1,162.13. In contrast, hourly earnings saw an increase from $30.01 in November 2023 to $30.99. For production and nonsupervisory employees, weekly earnings decreased slightly from $1,099.13 in October to $1,097.37, although hourly pay rose by about $1 to $29.42.
Overall employment surged by 227,000 jobs across all industries, aligning closely with economists’ predictions, attributed largely to recovery efforts following October’s hurricanes and port strikes. The unemployment rate also increased by 0.1 to 4.2%, but for transportation and material-moving occupations, the rate decreased from 6% to 5.7% compared to the previous year.
