The Impact of Rising Warehouse Rents on Supply Chains & 3PLs
According to a
July 30, 2024 News Release by BLS (Bureau of Labor Statistics, in the US Department of Labor), Seasonally Adjusted New Job Openings, New Hires and Separations have all been slightly decreasing or holding steady from June of 2022 to June of 2024 in most sectors, including Transportation, Warehousing & Utilities. While a casual observer might jump to the conclusion that the economy is obviously gradually slowing down and assume that fewer job openings means that the supply of labor is catching up with the demand, they would be gravely mistaken.
While the number of job openings in many sectors including warehousing and transportation have been steady decreasing, the number of qualified applicants as defined by actual new hires have also decreased, and any gains are generally canceled out by a nearly equal number of separations. Still employment in warehousing is expected to outpace labor force growth in the next several years.
Consider this statement by the
U.S. Chamber of Commerce, “The COVID-19 pandemic caused a major disruption in America’s labor force—something many have referred to as "The Great Resignation." In 2022, more than
50 million workers quit their jobs, following the 47.8 million who did so in 2021. In 2023, this trend gradually subsided, with 30.5 million workers resigning as of August.
A closer look at what has happened to the labor force can be better described as "The Great Reshuffle." While quit rates remain high, hiring rates continue to outpace them as many workers have been transitioning to other jobs in search of an improved work-life balance and flexibility, increased compensation, or a strong company culture.