FREIGHT RAILROAD JOB KEY FACTS
- The freight rail industry is one of the safest places to work in America.
- Rail workers earn 40% more than the national average.
- The median tenure of railroad employees is almost 14 years.
- More than 80% of Class I rail employees are unionized.
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The rail industry attracts employees from diverse backgrounds—ranging from high school graduates to those with advanced degrees. They all help transport essential goods that sustain the economy. Railroads offer lifelong careers in engineering, dispatching, law enforcement, IT, and industrial development. The industry also has a strong history of hiring veterans. Competitive wages, benefits, and career growth make rail a long-term choice for many, often spanning generations. Every rail transportation job supports 3.9 additional jobs across the nation the U.S. economy.
Our 2024 Jobs Report provides a comprehensive review of the benefits and opportunities that come with freight rail careers. It also offers insights from dedicated railroaders.
Freight rail employees are some of America’s highest paid workers.
Freight rail’s competitive pay is part of the reason generations of families seek out careers on the rails. The total average value of Class I railroad craft employee annual pay and benefit package (including healthcare, paid time off, and retirement programs) now ranges from about $135,000 to almost $190,000. The average is $160,000. Freight rail workers earn 40% more than the national average.
The freight rail industry is one of America’s safest places to work.
The Bureau of Labor Statistics reviews workplace injuries annually across different sectors. Year after year, railroads consistently outperform other transportation modes (including trucks, water transportation, and airlines). They also outperform most other major industries (including agriculture, mining, manufacturing, and construction). In fact, the Class I railroad employee injury rate per hour worked is lower than the rate for grocery and department stores. These safety gains are thanks in part to the technology that directly supports railroaders.
Advanced training centers with simulators and virtual reality enable employees to practice real-life skills in a safe, rigorous, and controlled environment. Furthermore, innovations like remote control locomotives and high-definition cameras allow employees to perform their jobs effectively from a distance where possible, keeping them out of harm’s way.
Railroads work collaboratively with unions.
More than 80% of Class I rail employees are unionized. This makes freight rail one of the most highly organized of all American industries. Through its National Carriers’ Conference Committee (NCCC), the National Railway Labor Conference (NRLC) represents many U.S. freight railroads in national (multiemployer) negotiations with the 12 major rail labor organizations. The most recent national collective bargaining agreement, covering 2020-2024, ushered in a series of substantial compensation increases, including a historic 24% wage increase.
Many railroaders build decades-long careers.
The median tenure of railroad employees is nearly 14 years, which is three times longer than the national average. Railroading offers stability, upward mobility, and a strong sense of purpose. It’s more than a job; it’s a tradition rooted in pride and service, often passed down through generations. From engineers to dispatchers, long tenures are common across the workforce. Career railroaders—those 60+ with 30+ years of service—receive over twice the average Social Security benefit in retirement.
The industry also has a proud history of hiring veterans. Railroads value these heroes for their discipline, teamwork, and safety focus, with one in six railroaders being a veteran. With robust on-the-job training and no college degree required, freight rail offers a path to lifelong, skilled careers.
Surprising Railroad Jobs
Most people think of a locomotive engineer or an employee working in a rail yard when they think of freight railroad jobs. But freight rail careers span a vast array of skills and expertise. Here are a few examples.
Simulations Developer: Two young railroaders developed the first rail operations simulation program. They turned their favorite hobby into a virtual training program. It teaches employees to maneuver locomotives, operate switches, and sort cars onto different tracks depending on their destination.
Biodiversity & Permitting Manager: These employees work with engineering departments on permitting processes and associated field compliance. These employees apply their monitoring and performance expertise wherever railroads impact wetlands.
Fuelmaster: Railroads are the most fuel-efficient way to move freight over land. Railroad engineers practice efficient driving techniques and use fuel management systems. They anticipate terrain, coasting, and reduced braking to minimize fuel consumption and air pollution.
Avalanche Control: In mountainous states with heavy snow accumulation, avalanches are a common occurrence. Railroads operating in this rugged terrain have avalanche teams that use data from mountaintop weather stations. Teams also use US Army 105mm howitzer guns mounted on Hirail cars to routinely shoot the mountains near railroad tracks. This triggers controlled avalanches to prevent larger dangers.
Police Officer: Railroad police forces date back to 1849 when they were set up to maintain order in railroad towns. They also investigate the losses of freight and luggage. Two famous railroad police officers, Allen Pinkerton and Wyatt Earp, investigated train robberies. Today, railroad police officers still protect the rail network by investigating cases of theft and vandalism. They patrol rail yards, depots, and railroad property.
Beer Conductor: In a rail yard outside of Chicago, temperatures can get so cold that a product like beer can freeze. Using remote control devices or manually switching out cars, train conductors keep the beer cars in motion. This is to ensure cans and bottles don’t freeze. It’s no small feat — especially in the months leading up to Cinco de Mayo. During this time, there are often 80 cars of beer in the yard at once.