April Employment Update: Trucking Sector Faces 300 Job Losses

The Bureau of Labor Statistics (BLS) published its April jobs report, revealing that for the first time in six months, the truck transportation sector lost 300 jobs, bringing the total to 1,557,800. This decline breaks the sector's seven-month streak of stable employment following pandemic-related fluctuations.

Speaking to Land Line, Arrive Logistics' Vice President of Market Intelligence, David Spencer, noted that while the decrease in truck transportation jobs might not suggest widespread job losses, it highlights the increasing pressure on carriers due to challenging trucking conditions in the first half of the year. Contract negotiations between carriers and shippers have intensified, with carriers facing demands for year-over-year rate discounts, potentially compromising profitability and leading to employment cutbacks.

“The conditions we see in this period will likely be a strong indicator of what to expect from a trucking employment environment moving forward,” Spencer said. “A weak peak season, and we will absolutely see more carriers throwing in the towel, resulting in further pullbacks in employment. A strong peak season would likely mean we are closer to the end of the down cycle, and it could be a sign to carriers to continue to invest in expanding their operations ahead of a potential sustained disruption, where carriers have much greater opportunity to earn profits in the spot market.”

The employment landscape across the transportation sector as a whole experienced mixed outcomes, with an overall increase of nearly 22,000 jobs. While certain subsectors, such as couriers/messengers and warehousing/storage, saw notable gains, trucking and scenic/sightseeing transport witnessed declines.

Notably, other transportation subsectors, like couriers/messengers and warehousing/storage, saw significant job gains, offsetting slight losses in trucking.

While wages dipped month-to-month, year-to-year comparisons show hourly earnings rising to $30.55 from $29.02 in April 2023.

Overall, while employment growth across industries slowed, the transportation sector, including trucking, is showing signs of stabilization amidst broader economic shifts.