Report: Transportation, warehousing job growth exceeds other sectors

The transportation and warehouse sector remains the fastest-growing U.S. industry, based on job growth, according to a recent report. The rise of e-commerce has been significant to this growth, which has been faster than any other sector over the past decade.

Employment marketplace ZipRecruiter Inc. recently released the 2024 Labor Market Outlook, a report that highlights trends across multiple U.S. sectors.

Between November 2013 and November 2023, the transportation and warehousing sector added more jobs than any other sector, with payroll employment rising by 47%. The sector has also added more jobs than any other sector since the onset of the COVID-19 pandemic, with payroll employment up 15%.

The sector’s rapid growth can be attributed to the rise in e-commerce from 0.6% of retail sales in 1996 to 15.6% in the fourth quarter of 2023. Other factors that have contributed to the growth include increased consumer demand for fast and reliable shipping.

Over the years, the sector has struggled with various labor challenges, including worker shortages, an aging trucking workforce, high turnover, and accidents and injuries. Some companies have looked to independent contractors to mitigate the worker shortages. The labor challenges can also be attributed to the rise in e-commerce.

“The 2020s are reminiscent of the transformative Roaring Twenties in that transportation is once again at the forefront of innovation,” ZipRecruiter Chief Economist Julia Pollak said. “Then, it was the technological leap from horse-drawn carriages to automobiles and tractors. Now, it’s the leap from gas-powered, driver-operated cars and trucks to electric and autonomous ones. Both shifts have sweeping implications for the labor market and the country’s economic geography.”

Over the past year, demand rose the most for several sector jobs, including freight dispatcher, materials inspector, transportation agent and logistics support. Following are the sector jobs with the most job seeker interest:

• Distributor
• Van/box truck operator
• Over-the-road tanker truck driver
• Truck dispatcher
• Warehouse order puller.

The report shows that mismatches in employer demand and labor supply can be attributed to “insufficient candidate awareness about what the roles entail.” For example, trucking job seekers might be unaware they could earn more as tanker drivers.

According to the report, sector trends to watch comprise investments in technology and changes in where inventory is stored. After the pandemic, companies altered their logistics processes and moved their inventory closer to buyers or across multiple fulfillment centers. They adopted inventory management systems, used various transportation methods, automated last-mile deliveries and fulfilled orders across various channels. Logistics support roles that have been important to these changes are among the fastest-growing jobs on ZipRecruiter. Over the next decade, logistics support roles are expected to rise by 18%, exceeding the average job growth rate.

According to McKinsey Global Institute, the transportation and warehousing sector has the third-highest automation potential of any industry. Companies have been investing in technology, including robotic picking systems, automated guided vehicles, delivery drones and predictive models. Warehouse management systems have become the norm. Technology is expected to improve efficiency and help the industry overcome labor shortages. To do this, however, a large investment will be needed in new equipment, software and tech talent.

According to the ZipRecruiter report, more U.S. companies are looking to “reshore” or “nearshore” their production either domestically or in Mexico after the pandemic and amid U.S.-China tensions and government incentives. This could result in a decline in international cargo demand across the Pacific and a higher demand for warehousing along the U.S. border with Mexico. Also, this could lead to higher demand for local warehousing and land transportation services throughout the United States.

The report shows job seekers like the transportation and warehousing sector for the low stress and financial security the jobs provide. However, they are looking for jobs that are not too physically demanding. Since January 2022, sector jobs available on ZipRecruiter have been offering more paid time off, but retirement benefits and schedule flexibility have declined. Over the past year, only 2.5% of sector jobs posted on ZipRecruiter were remote. Over the same period, nearly half were hourly jobs.

Women comprise 27% of the sector’s workforce, flat from 2001. The report shows that women can be attracted to the workforce by creating mentor programs, offering flexible work hours and highlighting a commitment to safety.

According to the report, the barrier to entry for the sector has largely remained unchanged over the past five years. One exception has been the increased demand for tech professionals with advanced degrees. Still, driving jobs require commercial driver’s licenses and clean driving records.

On a recent episode of Transport Topics podcast Roadsigns, UPS driver Gragg Wilson, the grand champion of the 2023 National Truck Driving Championships, provided insights on recruiting and retaining drivers.

“Just treat us like humans,” Wilson said. “Listen to us when we have questions and concerns. When companies listen to their employees… I think that’s huge. We don’t want to be treated like a number.”

Drivers want fair, merit-based pay structures and on-the-job training, according to the podcast. Successful companies adapt to meet industry demands and limit turnover by anticipating driver concerns.

According to Roadsigns, annual turnover rates are as high as 90% at some fleets, and the cost to recruit a new driver ranges between $20,000 and $25,000. Wilson said many companies have started new drivers at the top of the pay scale and offered them benefits from day one. Competitive offers are paying off, with 54% of drivers saying they’re more likely to accept a position with a sign-on bonus.