Despite the trucking industry's struggles with a sluggish freight market in 2023, truckload drivers saw a significant boost in their annual earnings, according to a new study by the American Trucking Associations (ATA). The ATA Driver Compensation Study found that truckload drivers earned a median annual salary of $76,420 in 2023, a 10% increase compared to 2021, despite market conditions not favoring growth.
ATA’s Chief Economist Bob Costello expressed surprise at the resilience in pay rates. “It’s actually remarkable that [annual pay] went up at all,” Costello said. “The trucking industry was in a freight recession in 2023, but this increase reflects just how valuable skilled drivers are, even when freight volumes were low.”
Drivers' Salaries Continue to Grow Despite Economic Slowdown
The study highlighted the trucking industry's ability to maintain competitive wages in a challenging environment. The average pay increase for drivers over the past two years reached 5.8%, a slight drop from the 10.9% increase seen in the previous study, but still notable.
The broader economic backdrop has seen a downturn in freight demand following the COVID-19-driven surge of 2020 and 2021, which focused heavily on goods. By early 2023, that demand had diminished significantly, as the economy slowed and supply chains recalibrated. ATA’s For-Hire Truck Tonnage Index reflected this shift, with May being the only month to post a year-over-year increase in tonnage since February 2023.
ATA President Chris Spear emphasized the importance of the trucking industry as a pathway to economic mobility, particularly for those without a college degree. “Trucking is one of the few roads in today’s economy that lead to the middle class without requiring a college degree and the debt that comes with it,” he said. “Those pursuing a career as a professional truck driver will find strong earning potential, which will only grow as demand increases.”
Shift in Carrier Strategy: From Recruitment to Retention
The 2023 study revealed a shift in trucking company priorities, moving from aggressive driver recruitment efforts to retaining current drivers. While more than 90% of truckload carriers increased driver pay during the 2021 study, only 42% reported doing so in 2023. Instead, carriers focused on tenure bonuses, offering them at a higher median value to reward loyalty.
“Retention is especially important,” noted Lindsay Bur, ATA’s Director of Data Science and Economics. She emphasized that once pay rates have been increased, it becomes difficult for carriers to reverse them, making retention more valuable. Bur added, “Carriers are holding on to drivers in a freight recession, which shows the industry’s focus on maintaining a quality workforce.”
Cautious Optimism for Freight Market Recovery
While the freight market remains soft, Costello expressed cautious optimism that it might be slowly recovering. “There are signs that we’ve hit the bottom in the freight market, and it’s starting to climb back,” he said, though he advised against expecting any rapid acceleration.
The study also showed that less-than-truckload (LTL) drivers continued to command higher salaries, with LTL linehaul drivers earning a median of $94,525 annually, and LTL local drivers earning $80,680. While fewer LTL carriers raised pay in 2023 compared to 2021, there was still a modest increase of 3.5%.
As the industry awaits a clearer recovery, the resilience of driver pay reflects the enduring need for skilled professionals, ensuring that truck driving remains a lucrative career choice despite economic headwinds.
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