Transportation, Logistics Sector Sheds 20,300 Jobs in January
Courier, delivery jobs plummet as distribution companies show post-holiday hangover following the surge in online sales
The surge in online sales has led to more and smaller shipments, which demands more labor in behind-the-scenes logistics. PHOTO: BLOOMBERG NEWS
Logistics companies cut thousands of jobs in January, led by a sharp drop of 14,400 courier and messenger jobs, the U.S. Labor Department reported Friday.
The decline underscores the seasonal nature of the delivery industry, which saw a sharp rise in December that has been mostly reversed as companies pare staffs following a surge in e-commerce orders that needed to be delivered over the holidays. The warehousing sector, which added 3,200 jobs in December, lost 400 jobs last month.
Trucking companies, meanwhile, added 1,500 jobs.
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Transportation and warehousing jobs are still hiring at a faster pace than the overall U.S. job market. The number of people employed in the industry is up 15% since January 2011, compared to 9% for total jobs in the same period.
This is in part because of the disproportionately high demand for logistics capacity created by e-commerce.
Faced with higher fulfillment costs and shrinking margins, retailers and their suppliers are moving goods in smaller amounts at a higher frequency,which is more labor-intensive.
The phenomenon has also led to a boom in industrial real estate, asmassive warehouses and distribution centers are popping up in regions around the U.S., and fueling hiring at distribution centers. The warehousing and storage sector has added 59,600 jobs since January 2015.
Including passenger transit jobs, transportation and warehousing companies overall dropped by 20,300 jobs, as the U.S. added 151,000 jobs overall, short of economists’ expectations. Retailers added 57,700 jobs in January and the manufacturing sector added 29,000 jobs, hiring that suggests confidence in future economic activity.
Analysts say the economic reports still are sending mixed signals, but that the job market is showing resilience despite slowing growth
