What’s Driving National Pullback in Warehouse Hiring?
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
- ◦Economy
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