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What’s Driving National Pullback in Warehouse Hiring?

California  + Weekender  | 

Logistics hiring took December off. That pause is juxtaposed to a surge in the larger shipping economy that included the addition of a large number of parcel carrier jobs for the holiday season.

The U.S. Department of Labor reported that warehouse and storage payrolls dropped by 4,800 jobs last month, a surprising reversal of an eight-month job expansion when employers ramped up for what turned out to be a record holiday sales season. The warehouse sector added 8,000 jobs in November.

It remains to be seen if the decline reflects a larger market shift, was simply a matter of difficulty getting new workers into distribution centers or a momentary market pause amidst soaring e-commerce demand. And the hiring pullback in the warehouse sector was in stark contrast to increased demand in other parts of the industry.

Distribution center operators indicated they were challenged to fill positions throughout the fall in an effort to meet online demand. Transportation companies also experienced increased demand from retailers and manufacturers, but struggled to recruit and retain drivers to satisfy freight demand.

Courier and messenger companies continued to hire in December, adding 2,100 jobs, which was the fourth straight monthly increase. That was part of an overall jobs picture that included the addition of 148,000 jobs last month to the U.S. economy, with unemployment remaining steady at 4.1%. Bright spots were the manufacturing and construction sectors, which added a combined 55,000 jobs. That signals stronger growth in the industrial economy, and is expected to fuel more shipping ahead.

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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