Trucking Not Represented in June Job Boom
The United States Department of Labor recently released the Employment Situation Report for June. While the report showed good numbers, the freight transportation industry was on the other side of the spectrum.
Over 200,000 jobs were added to the economy last month, a big jump that represents good things for the next fiscal quarter. The unemployment rate held at 4.4 percent. However, for-hire trucking showed a loss of 1,400 jobs. May’s employment total was also revised and reduced by 700 jobs.
The trucking industry totaled 1.47 million jobs last month. Despite the drop, the total is higher than last year’s by about 25,000. The construction, manufacturing, and warehousing sectors all added jobs last month, with about 20,000 new jobs between them. The vast majority of these (around 80%) were in construction.
The drop in jobs is not a huge cause for alarm, as it doesn’t represent a significant impact on the immediate driver workforce. A number of questions can be raised about the drop, and the current state of the industry.
Many analysts are looking at things like changing capacity and the long-term affects of hiring efforts to carry the employment number up as the year goes on.
Some projections differed from others on job growth in for-hire trucking, with changes to the industry playing a role in the variance from original projections. Infrastructure plans have not yet begun in the capacity some analysts were hoping for, and trucking may on its way to a job boom as other sectors of the economy begin to improve.
Employment issues in the trucking industry of notable interest in recent months include the ongoing trucking issue in the port area. Changes were also suggested on a federal level in certain cases to make it easier for new drivers to get on the road.
All of these factors may influence the growth of trucking jobs in the future. As demand increases, carriers will be pressed to find solutions. As of now, the report has analysts looking toward next month’s data to see whether a trend will be in effect or whether this drop will be a mere outlier.