Package-delivery companies staffed up as hiring across the broader U.S. economy collapsed
By Jennifer Smith Close Jennifer Smith May 8, 2020 2:53 pm ET Package-delivery companies added jobs last month as homebound consumers ramped up online purchases amid a crumbling U.S. employment market.
Courier and messenger companies that deliver to homes and businesses added 1,800 jobs in April, according to seasonally adjusted preliminary employment figures the U.S. Bureau of Labor Statistics released Friday. It was the only industry in the transportation and warehousing sector where payrolls expanded in a month when coronavirus lockdowns cost the economy a record 20.5 million jobs. The hiring among parcel carriers comes as the pandemic accelerates the shift to e-commerce. United Parcel Service Inc. said home deliveries spiked nearly 70% by the end of March, with drivers making 15% more stops on their daily routes. Last month, online giant Amazon.com Inc. reported a 26% jump in quarterly sales as its world-wide shipping costs hit $10.9 billion, a 49% increase from the year-earlier period. Newsletter Sign-up The Logistics Report Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology. PREVIEWSUBSCRIBE Overall U.S. e-commerce sales rose 49% in April compared to a March 1 to March 11 baseline, according to Adobe Analytics. Job cuts across other logistics operations reflected a contracting economy as businesses deemed nonessential halted operations to help limit the spread of the virus. Trucking companies slashed 88,300 jobs in April as a jump in business moving food and medical supplies failed to compensate for plunging demand from closed industrial and retail customers. Warehousing and storage operators shed 74,100 jobs, nearly 10 times the number cut at the industry’s January 2009 low point. Last month’s nosedive in hiring came even though Amazon and Walmart Inc. recruited heavily to staff their online fulfillment centers to meet the surging demand.Essential businesses such as medical and food suppliers are still increasing their warehouse staff, with hiring demand in those areas up 10% to 20% since the pandemic hit, said Doug Hammond, zone president of in-house services for Randstad US, a subsidiary of the Dutch recruiting firm Randstad Holding NV.“Our auto clients, for example, have given us back-to-work schedules for the month of May,” Mr. Hammond said. Many customers “are going to new scheduling models to space out workers and limit the number of people in the facility.”Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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