Driver Pay Climbs Despite 2025 Freight Recession, ATA Study Finds

Driver pay increased in 2025’s freight recession, ATA study finds

Truck driver compensation continued to rise in 2025 despite weak freight conditions, falling rates and higher operating costs, according to the American Trucking Associations’ 2026 Driver Compensation Study.

The findings show that pay growth persisted through the later stages of one of the trucking industry’s longest freight downturns. The increases were not uniform across every type of operation, but compensation rose in several major segments as carriers worked to retain safe, experienced drivers.

“Driver pay continued to move higher even as carriers faced one of the longest and most difficult freight downturns in recent memory,” said Bob Costello, ATA chief economist. He said the results reflect the value fleets place on retaining qualified professional drivers, particularly as market conditions begin to improve.

Truckload pay posted the strongest gain

For-hire truckload carriers reported an 8.3% increase in median annual compensation for dry van irregular-route employee drivers. Pay reached $73,639 in 2025, compared with the median reported for the same category in 2023.

Irregular-route drivers generally move freight across changing lanes and destinations rather than following a fixed schedule or geographic route. The pay increase is significant because it occurred while freight volumes and rates remained under pressure for much of the period covered by the study.

Compensation also increased for dedicated-route drivers at for-hire truckload carriers, although at a slower pace. Median annual pay for those drivers rose 4.2% from 2023. Dedicated drivers continued to earn more on average than irregular-route drivers.

The earlier ATA compensation study found that truckload drivers earned a median annual amount of $76,420 in 2023, a 10% increase from 2021. However, the pace of pay growth had slowed. More than 90% of truckload carriers reported raising driver pay during the period covered by the 2021 study, while 42% reported increases during the more recent period.

Costello said the continued increase was notable because it occurred during a freight recession, when lower demand and excess capacity typically limit carriers’ ability to raise wages.

LTL and private-fleet drivers also reported solid earnings

Less-than-truckload drivers continued to post strong compensation levels. Linehaul LTL drivers earned median annual compensation of $85,000 in 2025, while local LTL drivers earned a median of $72,942.

Private-fleet compensation also remained competitive. Dry van dedicated-route drivers at private carriers earned more than $75,000 in median annual compensation. Tank truck and refrigerated drivers at private fleets earned even more, according to the study.

Regional differences were also evident. Dry van drivers working for for-hire truckload carriers in the Northeast had the highest median annual compensation among the seven regions examined, earning slightly more than $78,000, excluding benefits.

The study included data from more than 130 fleets representing more than 140,000 employee drivers and 9,000 independent contractors. It covers pay and benefits across for-hire truckload, LTL, private and regional operations, as well as specialized work such as flatbed, refrigerated, tank truck, local and over-the-road service.

Independent contractors and detention pay

Leased-on independent contractors continued to report substantially higher gross compensation than employee drivers, although the figures are not directly comparable because they are gross amounts and do not account for business expenses.

Independent contractors leased to truckload carriers received median gross annual compensation of more than $170,000. Contractors working with private fleets reported more than $200,000 in median gross annual compensation.

The study also found that 74% of surveyed for-hire truckload carriers paid drivers for excessive detention time. That provision can be important to drivers because extended delays at shippers and receivers reduce available driving and working time without necessarily increasing mileage pay.

At the same time, the median signing bonus declined by $500 to $2,000. The study attributed the change to a less competitive driver market, suggesting that carriers relied somewhat less on large upfront incentives than in previous periods.

Carriers continue to adjust pay

Pay increases announced by individual carriers have continued as freight conditions show signs of tightening. GP Transco raised company-driver pay by 5 cents per mile, bringing its top reported rate to 72 cents per mile. Hirschbach announced a total increase of 10 cents per mile for over-the-road company and lease drivers over several months.

Other carriers have also announced increases in recent periods. Nussbaum introduced a second pay increase in 2026 focused on duties beyond mileage. ATS increased pay for company flatbed drivers to a range of 70 cents per mile, while Roehl Transport announced another driver pay increase. Highway Transport raised pay for liquid bulk chemical haulers and said additional increases were planned. K&B Transportation increased pay for its “Road Warriors” to 82 cents per mile.

These changes come as capacity has continued to leave parts of the truckload market and carriers compete for experienced drivers in key lanes. A compensation forecast cited in the supplied data projects a 2.16% increase in pay for the for-hire carrier segment in 2026. That outlook is based on historical data, current trends and a proprietary forecasting model.

The broader recovery remains uneven. Inflation, weaker consumer confidence, a stagnant housing market and a softening labor market continue to weigh on freight demand. Still, the ATA study shows that driver pay held up even during the downturn, while recent carrier announcements indicate that compensation remains an important tool for retaining qualified drivers as market conditions change.