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Parcel carriers cut jobs, while warehousing and trucking add positions

Dive Brief:
  • Courier
    and messenger companies slashed their workforce by 9,700 in February,
    while warehouse operators and trucking companies added 4,800 jobs combined
    across their sectors from January to February, according to the March
    report from the Department of Labor.
  • Over
    the past 12 months the parcel sector, including UPS and FedEx, added
    53,100 jobs, including 14,500 in January alone.
  • Wages
    at delivery firms stumbled, with the average hourly rate about $21 in
    January, compared to $22 a year ago, The Wall Street Journalreported.
    Payrolls at courier and messenger companies grew 8% in the past year.

Dive Insight:

The labor
shortage has led warehouse and trucking companies to compete for workers,
although overall the economy added only 20,000 jobs in February, below
economists’ expectations.
To overcome
the labor shortage, Prologis, the largest owner of warehouses and
distribution centers, has partnered with local workforce programs in Southern
California and other locations to prepare high school students for logistics
positions, The Wall Street Journal reported.
Goods-producing
industries dropped 32,000 jobs from the payrolls in February, perhaps a signal
of lower output that will also reduce demand for transportation and logistics
services.
The warehouse
sector added 3,900 jobs in February, roughly a third of the number that came in
January. Distribution and storage companies have raised pay and benefits to
compete for employees during this period of historic low unemployment.
Trucking
companies in February added 900 workers, the 10th straight
month of growth during a historically strong freight market. Wage increases of
about 4% helped truckload employers add about 13,000 workers during 2018,
nearly double the number hired in 2017.
Supply Chain Dive

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