More than 20,000 trucking jobs lost in 2023

Last year was a rough one for trucking jobs, with the industry suffering a significant net loss in August from which it never fully recovered.

According to the latest numbers from the Bureau of Labor Statistics, more than 3,000 trucking jobs were added to the economy in December. Although this marks the seventh monthly increase in 2023, the year ended with an overall loss in trucking employment.

David Spencer, vice president of market intelligence at Arrive Logistics, pointed out to Land Line that although the seasonally adjusted numbers reveal an increase, non-seasonally adjusted numbers show a decrease of 4,500 jobs, suggesting a better-than-usual December.

“The data continues to support the trend we have seen in other trucking indicators – that despite a greatly reduced rate environment, capacity and overall employment are reducing at a slower pace than in prior market cycles,” Spencer said. “Whether the Q4 numbers indicate this trend or simply optimism from carriers that a market turn is around the corner will likely be revealed in Q1, as demand fades from peak season. Two fourth-quarter trends that could support the relatively stable trucking employment were a continuation of strong consumer and non-residential construction spending.”

Despite the relative optimism, Spencer said that in the long term, he expects more job losses “pending a change in the overall demand environment.”

Revised numbers show an increase of 1,500 trucking jobs in November (compared to the initially reported gain of 700) and a decrease of 2,700 jobs in October (compared to the initially reported loss of 3,600).

For the year, trucking jobs went down by nearly 21,000 in 2023. In 2022, they went up by nearly 61,000.

In August, the trucking industry lost nearly 31,000 jobs after the collapse of Yellow Corp. The following month, 14,000 trucking jobs were added to the economy, the largest one-month increase in more than a decade. Despite the rebound, jobs quickly stabilized, netting an increase of only 16,100 jobs since August.

Accounting for all transportation sector jobs, employment dropped significantly, by nearly 23,000 jobs. Transportation jobs dropped eight times in 2023. Since the pandemic, they have dropped only twice before: in April 2021 (minus 12,900 jobs) and in November 2022 (minus 37,100).

The transportation sector’s net loss was largely the result of a substantial loss in the couriers/messengers subsector, which experienced a job loss of more than 32,000. Other losses included warehousing/storage (minus 4,900), water transportation (minus 500) and pipeline transport (minus 300). Job gains were led by air transportation and transit/ground passenger transport (each 3,700), trucking and support activities for transportation (3,100).

Based on revised numbers, employment in the transportation sector decreased by 500 in November, unchanged from the previous report. However, October’s revised numbers show a decrease of 28,400 jobs, up sharply from the initially reported decrease of 12,400.

For the year, transportation employment went down by 62,700 jobs in 2023. For 2022 overall, transportation employment increased by nearly 261,000 jobs.

Month to month, wages decreased in November. Average weekly earnings of all employees in the transportation and warehousing sector increased by $15.43 to $1,145.86. Compared to December 2022, hourly earnings increased to $29.84 from $28.17. Accounting for only production and nonsupervisory employees, average weekly earnings increased from $1,062.76 in November to $1,067.85. Hourly earnings increased $1.87 from December 2022, to $28.25.

Across all industries, 216,000 jobs were added to the economy. The unemployment rate was unchanged at 3.7%. Compared to the previous year, the unemployment rate for transportation and material-moving occupations increased from 5% to 5.4%.

According to the Bureau of Labor Statistics, the consumer price index has jumped by 3.1% over the past 12 months. The 0.1% increase in November was broad-based, with the indexes for shelter, gasoline and food being the largest contributors. The index for all items less food and energy rose 0.3%, up 4% over the year. LL