Millennials would apparently rather live in their mothers' basements for the rest of their lives than take a "blue collar" job like joining the ranks of America's long-haul truckers - and that's creating serious problems for the US economy that could prompt the Federal Reserve to hike interest rates even more quickly, as the central bank attempts to head off an "overheating" economy.
In a report published Tuesday, the Washington Post became the latest US news organization to explore the factors driving up freight costs in the US. These include a shortage of drivers that is forcing trucking companies to hike wages at a seriously rapid clip. As we pointed out last year, the Trump administration's focus on restoring blue-collar jobs in the US has inadvertently helped create a "yuge" labor shortage. According to a study done by one industry group, freight companies could be facing a shortage of more than 175,000 drivers by 2024.
The problem is that few young people are willing to dedicate their careers to long-haul trucking for fear that tech giants like Uber and Google will soon render them obsolete by introducing fleets of self-driving trucks.
The US has been struggling with a shortage of drivers for years. But in 2018, that shortage has reached a crisis level as a strong economy has caused demand for goods to soar across nearly every sector of he US. In addition, the federal government introduced a new rule in December that limits driving shifts to 11 hours before drivers must take a legally mandated break.
In response to these circumstances, Joyce Brenny, chief executive of Brenny Transportation in Minnesota, gave her drivers a 15% raise this year, but she still can't find enough workers for a job that now pays $80,000 a year - well above the national median income. Brenny added that she might be forced to hand out another 10% raise later this year.
"I've never seen it like this, ever," said Brenny, who has been in the trucking industry for 30 years. "It doesn't matter what the load even pays. There are just not drivers."
Trucking executives say their industry is experiencing a perfect storm: The economic upswing is creating heavy demand for trucks, but it's hard to find drivers with unemployment so low. Young Americans are ignoring the job openings because they fear self-driving trucks will soon dominate the industry. Waymo, the driverless car company owned by Alphabet, just launched a self-driving truck pilot program in Atlanta, although trucking industry veterans argue it will be a long time before drivers go away entirely.
Brenny anticipates she will have to raise pay another 10 percent before the end of the year to ensure that other companies don't steal her drivers.
"The drivers deserve the wages. They really do, but the raises are coming so fast that it's...