Newly released figures from the US Labor Department show a general slowdown in the transportation sector, with trucking companies cutting 6,300 jobs last June.
This was the biggest month-to-month dip this year, data showed, as demand remained lukewarm and players lost pricing leverage due to overcapacity.
The cuts come amid lower second quarter earnings for some of the country’s largest trucking carriers. Heavy duty truck orders likewise bore the brunt of lack of demand as orders dipped to the lowest levels seen in years.
Manufacturers, which typically strongly affect trucking demand, grew by 14,000 jobs last month. However, this spike did not offset the total 42,000 jobs lost in this sector since the beginning of the year.
Scott Paul, president of the Alliance for American Manufacturing industry group, noted that despite the overall “relief” from May’s dismal economic figures, manufacturing and import sensitive sectors are “still lagging behind”.
Paul added that global overcapacity, the strong dollar, and last month’s Brexit, are pressure points bearing down on the manufacturing sector.
Meanwhile, warehousing and storage companies saw sustained growth, with 4,700 jobs added in June. Also, courier and messenger companies grew by 1,300, clocking in four consecutive months of growth.
These sectors support e-commerce trade, and are reaping the benefits of robust online shopping activity.
In total, the US job market expanded by 287,000 jobs, allaying fears of an economic slowdown by surpassing forecasts.
