Trucking Slashes Jobs In June While Warehousing Makes Gains

The cuts show that logistics companies aren't waiting to see if the industrial economy recovers, while e-commerce growth continues to boost the warehousing sector.

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The U.S. Bureau of Labor Statistics released its June employment report on Friday, showing that trucking companies slashed jobs last month while jobs in warehousing continued to rise.

Trucking companies cut 6,300 jobs in June, the biggest monthly reduction so far in 2016. This comes after an already slow start to what is supposed to be the peak shipping season. The New York Times also cites ACT Research showing that June orders for big rigs reached a nearly six-year low.

Likewise, jobs in freight rail operations continued cuts with another 1,600 fewer jobs in June. In the past 12 months, railraods have cut employment by 29,600 jobs.

Combined, transport and logistics jobs were cut by 9,400.

The numbers are further evidence of an impending shortage in trucking resources within the next couple of years that could result in rising shipping costs.

On the flipside, warehousing and storage jobs gained another 4,700 jobs, bolstered by continued growth in e-commerce. That sector has gained 54,600 jobs in the past year.

Friday's June report showed that overall nationwide unemployment increased to 4.9 percent last month, up from 4.7 percent in May.

The number of unemployed persons increased by 347,000 to 7.8 million in June. However, the Associated Press states "the uptick occurred mainly for an encouraging reason: More Americans began seeking jobs — a sign of growing confidence in their prospects — though many didn't immediately find work."

Meanwhile, the total nonfarm payroll employment increased by 287,000 after adding only 11,000 jobs in May.

Manufacturing added 14,000 jobs in June, including 11,000 in nondurable goods and 3,000 in durable goods. Construction employment showed no change, while mining lost 6,000 jobs. The Bureau reports that mining has lost 211,000 jobs since peaking in 2014.

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