Trade News > Trade Logistics > Transport Jobs Shrink in February

Transport Jobs Shrink in February

The Journal of Commerce Online - News Story
All freight modes fell faster than normal winter pace

Despite signs of a slowly improving economy, employment in the transportation modes that include freight operations slid further in February, the Labor Department reported.

That extends an almost steady downtrend in transport industries since the recession hit hardest starting in late 2008. In recent months several transportation modes have reported gains in traffic levels as they pull out of their downturn, but that has yet to lift their employment.

Based on preliminary reports from companies, Labor said trucking shed another 8,200 jobs last month to bring the sector’s workforce to 1.194 million.

That is the raw employment data, not adjusted for historical seasonal variations; economists say last year’s plunging economic activity would skew the seasonal formulas for some time. Still, February’s trucking decline outpaced Labor’s formula expectations, so that even the adjusted employment level shrunk.

Air transportation jobs, which cover the passenger as well as freight airlines, held steady on an unadjusted basis in February at 451,900, but fell slightly after seasonal adjustment.

Rail jobs, dominated by Class I freight lines but including small freight carriers and inter-city passenger rail, dropped a slight 100 positions to 213,000. Water transportation jobs that include mostly freight operations shrunk to 58,400 from 61,200 in the raw data, and declined by 800 on a seasonal basis.

Labor said employment also declined in transportation support jobs and among couriers, but increased after seasonal adjustment for warehousing.

Contact John D. Boyd at jboyd@joc.com.

While some rail jobs will drop, others will see an uptick. The freight needs to be moved, and avoiding using rail will only cause a build up of demand. Once that demand peaks, there will be another surge in the need for workers. Also, with increased government involvement, some sectors will actually see an increase in jobs. For example, railroad track inspection will stay in demand even while rail traffic decreases due to government oversight.

- By ghalt on 3/14/10

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