State of the Industry: June 2024 Trucking Jobs

Statistics for June 2024 Trucking Jobs: A Closer Look

Minor Decline in Trucking Jobs

In June 2024, truck transportation jobs experienced a slight decline, with a reduction of 100 jobs, bringing the total to 1,548,600. This marks a continuation of a downward trend observed over recent months. The Bureau of Labor Statistics (BLS) reported this minor change, which, while seemingly insignificant, highlights broader industry challenges.

Seasonal Adjustments and Revisions

The BLS also revised job numbers for April and May, reflecting a more significant decline than initially reported. In May, the seasonally adjusted figure dropped by 1,400 jobs from the previous month’s report, settling at 1,548,700. Similarly, April’s final figure saw a reduction of 700 jobs. These adjustments indicate that truck transportation jobs in June were at their lowest since October 2023, when they numbered 1,548,200. The peak earlier this year was in March, with 1,556,400 jobs, underscoring a steady decline.

Industry Insights and Future Projections

David Spencer, Vice President of Market Intelligence, commented on the current state of the industry. He noted that the lack of growth aligns with the persistently low spot rates throughout the year. However, he remains cautiously optimistic about the summer peak season’s potential to stabilize employment levels. According to Spencer, a full recovery in rates and employment is not expected until at least 2025, making stability the best short-term outcome for the industry.

Non-Seasonally Adjusted Figures Show Positive Signs

Despite the modest decline in seasonally adjusted figures, non-seasonally adjusted truck transportation jobs showed a more positive trend. These figures climbed to 1,559,400 in June, significantly higher than the February low of 1,527,300. This increase marks the second consecutive month of sharp rises. This suggests that the industry may be on the cusp of a turnaround despite June 2024 Trucking Jobs being down.

Broader Transportation Industry Context

Rail and Warehousing Jobs

Other segments of the transportation industry also showed varied performance. Rail jobs increased by 300, reaching 153,300, the highest since April 2020. Warehousing and storage jobs, after months of decline, appear to have stabilized at 1,771,500 in June. Although still below last year’s levels, this rebound is a positive sign for the sector.

Long-Distance Truckload Drivers

The subcategory of long-distance truckload drivers saw a reduction in May, with jobs falling to 539,000 from 541,900 in April. Over the past year, this segment has lost nearly 10,000 jobs, reflecting the broader challenges faced by the industry.

Wage Increases

On a brighter note, wages for truck transportation workers have seen significant increases. The not-seasonally adjusted average hourly wage for production and nonsupervisory workers hit $30 for the first time. Although the average wage for all employees slightly dipped from April’s all-time high, it remains robust at $31.29.

Trucking Jobs Stability Amid Challenges

Employment Trends and Projections

The trucking industry has seen fluctuations in employment, with June marking the third consecutive month of job losses. The cumulative effect is a net loss of over 30,000 jobs compared to a year ago. David Spencer’s analysis suggests that low spot rates and high capacity are major factors driving this trend. Despite these challenges, the expected summer peak season may offer some stabilization.

Transportation Sector Growth

Overall, the transportation sector added over 7,000 jobs in June, driven by increases in support activities for transportation and transit/ground passenger transportation. However, the sector also faced declines, particularly in warehousing and storage, which lost 2,300 jobs.

Economic Indicators and Employment Data

Unemployment Rate and Job Openings

The unemployment rate rose to 4.1% in June, marking the third consecutive monthly increase. Despite this, job openings remain high, exceeding pre-pandemic levels by about 1 million. This indicates a robust demand for labor, even as specific sectors like trucking face unique challenges.

Spot Rates and Market Conditions

Spot rates, a critical indicator for the trucking industry, have shown mixed trends. While refrigerated van spot rates eased, dry van rates experienced a slight increase. These fluctuations reflect the ongoing adjustments and challenges within the market.

Rail and Intermodal Traffic

Rail carload volume increased year-over-year for the first time since March, driven by a 2.1% rise in total carload traffic. Intermodal traffic also saw gains, contributing to a 2.0% year-to-date increase in total rail traffic.

Looking Ahead

The truck transportation industry faced a minor decline in June 2024 trucking jobs, with broader economic and market conditions playing a significant role. While seasonally adjusted figures show a slight drop, non-seasonally adjusted numbers indicate potential positive momentum. As the industry navigates through these challenges, stability in employment levels and cautious optimism for future growth remain the focus. Other sectors within transportation have shown varied performance, highlighting the complex and dynamic nature of the industry.