The latest U.S. Bureau of Labor Statistics (BLS) employment data reveals a mixed and somewhat unstable picture for the freight and logistics labor market, with trucking employment slipping in May while warehousing continues to strengthen.
Truck transportation jobs stood at 1,424,800 in May, marking a decline of 4,400 positions compared with a revised April figure. While April had initially appeared to signal renewed hiring momentum, revisions show that much of that gain has now been erased.
Even after adjustments, April still reflected a net increase of 4,900 jobs from March. However, the overall effect is minimal: May’s truck transportation employment level is now just 500 jobs above March levels, effectively wiping out the earlier upward momentum suggested by last month’s data.
Looking further back, the sector remains under pressure. Employment is down 2,400 jobs compared with the end of last year and nearly 23,000 jobs lower than May 2025, underlining continued softness in trucking demand and hiring activity.
Warehouse jobs keep getting stronger
The warehousing sector, meanwhile, keeps on moving up. Warehouse jobs added 6,400 jobs in May, the fourth month in a row of gains and the biggest monthly gain since May 2024, which was also the beginning of several months of 7,000+ job gains in the sector.
Total warehouse employment now stands at 1,824,400 jobs. Despite the recent recovery, this remains well below the 1,875,300 jobs recorded a year ago and significantly under the sector’s historical peak of 1,939,300 jobs reached in March 2022.
Mixed signals across trucking segments
A closer look at segment-level data, shared by Mazen Danaf, principal economist at Uber Freight, suggests some areas of recovery beneath the surface.
Long-distance truckload employment rose by 2,600 jobs in March and 1,990 in April. While still down year-on-year by around 2%, Danaf notes this could indicate the early stages of a gradual recovery phase that may unfold over several quarters.
But he warns against reading too much into short-term gains, noting that the capacity recovery in the post-pandemic economy in 2021 took a number of quarters to fully manifest. His assessment suggests that while conditions may be stabilising, trucking employment remains historically subdued.
Broader U.S. labour market remains strong
Despite weakness in trucking, the wider U.S. employment picture remains robust. Independent economist Aaron Terrazas described the latest 172,000-job gain as the third consecutive strong monthly report, reinforcing what he called a developing trend.
He cited steady unemployment, upward revisions to prior months and stronger-than-expected payroll growth, saying overall momentum is healthy even if some parts of transportation are lagging.
Within transportation, however, performance was uneven. Air transportation lost 8,700 jobs, a decline attributed in part to the shutdown of Spirit Airlines.
Terrazas also noted that sustained labour strength reduces the likelihood of imminent interest rate cuts from the Federal Reserve, particularly as inflation continues to show upward pressure.
Structural pressures still weighing on trucking
From an industry perspective, conditions remain constrained. David Spencer, vice president of market intelligence at Arrive Logistics, said core fundamentals in trucking have not materially improved.
He pointed to persistent pressure from fuel costs, regulatory changes and enforcement developments, including cabotage enforcement and recent Supreme Court rulings affecting broker liability.
“Flat employment trends may also reflect employer hesitancy, as companies are reluctant to expand payrolls amid uncertain demand and rising operating costs,” Spencer said.
Wage growth still happening in freight sectors
The report also points to ongoing wage growth in logistics roles.
Truck transportation production and non-supervisory employees saw hourly earnings rise to $32.41, a new record, although average weekly hours fell slightly to 40.5 from 41.1 in March.
Warehouse workers also reached a new wage milestone, with average hourly earnings increasing to $25.98.
Rail employment saw a modest increase to 149,600 jobs, up slightly from 149,400, but remains below the 155,400 jobs recorded a year earlier.
Overall, the data paints a freight labour market moving in different directions: trucking remains volatile and below historical norms, warehousing continues to recover steadily, and broader economic indicators remain strong enough to sustain a tight labour environment—even as sector-specific weaknesses persist.
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