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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  • There is still a a shortage of mechanics as some stayed home with the children. We need to concentrate on training more mechanics to fix newer motors and computer systems on both tractors and reefer units. Lots of truck drivers are going to stay at other jobs or retirement with E-logs and lower income that truck drivers are getting.