Study confirms trucking job losses

by Today's Trucking

OTTAWA, Ont. — Over the first two quarters of 2020, employment in the Canadian trucking and logistics sector is expected to contract by 10.4%, or 72,000 jobs, due to Covid-19.

That is according to a new report released Wednesday by Trucking HR Canada.

Trucking HR
Source: Trucking HR Canada

“We expect a 10.9% contraction among truck drivers and 10.0% decline among non-truck driver occupations,” the report said.

“Truck drivers are expected to account for 34,700, or roughly one in two Covid-related job losses within the trucking and logistics sector.”

But the report said the sector is likely to face a labor shortage again in a few years.

“Given anticipated retirements and other labor outflows from the truck driver occupation, there is a strong indication that, by 2023, labor demand is unlikely to be fully met, which would mean a return to driver shortages.”

The report also said that declines in truck driver employment will cost the industry $3.2 billion in sales in 2020.

Other key findings:

  • Trucking and logistics employment will stabilize by the first quarter of 2022 and remain roughly 1% below pre-Covid levels through 2023.
  • With an expected 690,000 workers in 2023, trucking and logistics employment is now expected to be 3.3%, or 24,000 workers, below the pre-Covid labor market projections.
  • Over the first two quarters of 2020, 12,600 shippers and receivers will lose their job because of Covid-19.
  • The trucking and logistics sector will shed 10.7% of its dispatchers (1,800 positions) as well as 10.3% of its mechanics (950 positions) over the first two quarters of 2020.
  • Delivery and courier drivers are expected to experience a slightly below-average decline in employment due to Covid-19. Over the first two quarters, employment in the occupation will contract by 7,500 jobs, or 10.2%.

It is the second in a series of reports on the impact of Covid-19, produced in partnership with the Conference Board of Canada.

A separate labor market survey published last month showed that the pandemic had hit the industry hard. It also warned of more layoffs.

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