Unpacking the Largest Decline in Trucking Jobs Since COVID-19: What Led to the August 2023 Crisis?

Summary: August 2023 saw the trucking industry experience the largest job decline since the pandemic began in April 2020. A significant factor contributing to this decline was the bankruptcy of Yellow, the former 4th largest LTL company in the U.S.

Recognizing Delayed Consequences in Major Events

Often, we can’t fully grasp the ramifications of a significant event until much later. It’s like ignoring a toothache only to wake up with unbearable pain in the middle of the night. Similarly, the transportation sector went through a seismic shift in August 2023, leading to a substantial reduction in trucking employment numbers, unlike anything we’ve seen since the COVID-19 outbreak.

Key Factors Behind the August 2023 Trucking Industry Job Decline

Various factors contribute to such massive industry changes, but for August 2023, one event stood out— the bankruptcy of Yellow, previously the 4th largest LTL (Less-Than-Truckload) company in the U.S. The closure of Yellow led to a staggering loss of 36,700 trucking jobs, marking this month as the one with the highest number of job cuts in the trucking industry since April 2020.

Contextualizing the Scale of Job Losses

To better understand the gravity of the situation, consider that August 2023 is the second-largest decline in trucking jobs over the past decade, only falling behind April 2020. Moreover, the total number of jobs lost in the six months with declines since the pandemic began totals 17,000, which is less than half of the jobs lost in August 2023 alone.

The Butterfly Effect: Long-Term Implications of Yellow’s Closure

The butterfly effect illustrates how small changes can trigger significant outcomes over time. While it was widely speculated that the closure of Yellow would negatively impact the trucking industry, the severity of this decline is historical.

Future Outlook: Rebuilding the Trucking Workforce

The events of August 2023 have deeply impacted the livelihoods of thousands in the trucking sector. As we move forward, it’s essential for those affected to find new opportunities for employment and for the industry to innovate and adapt.

—Jack

Works Cited: Truck transportation jobs plummet in August – FreightWaves