The U.S. Department of Labor’s Bureau of Labor Statistics announced its December 2015 jobs report, and it is good news for the trucking industry. December experienced the largest job gain in more than two years for the transportation industry.
The overall transportation industry sector added more than 23,000 jobs in December, which is the largest increase since November 2013 when more than 30,000 jobs were added to the economy. Overall, U.S. payrolls grew by 292,000, which is far more than analysts expected. The unemployment rate stayed at five percent.
The truck transportation subsector experienced an increase of 5,300 jobs after it gained more than 2,000 in November and 400 in October. That increase to end 2015 is the most since last June when 7,400 jobs were created. The continued improvement in the nation’s employment picture is good news for trucking in that it means more people are working and buying good that are delivered by trucks.
One of the main storylines in 2015 has been the driver shortage in the trucking industry. With total jobs increasing in the sector, it could be assumed that trucking companies are able to find drivers to hire. But if the transportations industry continues to grow, that driver shortage may grow as well.
In a recent survey done by the Associated General Contractors of America, 71 percent of construction firms said they plan to expand their payrolls in 2016, as contractors are expecting the public and private markets to grow. Of those companies that said they plan to expand payrolls, 63 percent report that their planned hiring will crease the total headcount of their company between one percent and 25 percent, while eight percent report that they will expand their headcount by more than 25 percent in 2016.
The increased demand in the private and public sector of the construction sector is good news for transportation, as it means more building materials will need to be shipped via the trucking industry.
Posted in Triumph Bancorp