The labor market for truck drivers could be easing, the latest report from Trucking HR Canada (THRC) reveals.
Between the third quarter of 2022 and Q3 2023, the number of vacant driver position decreased by 6,765 positions and the occupational vacancy rate is estimated to have decreased from 8% to 5%, according to THRC’s quarterly Labour Market Information snapshot.
“The latest report shows a lower unemployment rate among truck drivers indicating a smaller pool of potential job applicants. Overall, this points to a continued rebound across the supply chain,” said Angela Splinter, CEO, THRC.
(Chart: THRC)
In 2021 the employment in trucking and logistics sector hit a 10-year record high of almost 790,000 as the economy rebounded from the pandemic. In 2022 and 2023, labor market pressures in the sector started to ease, the report said.
Fewer experienced drivers seeking work
In 2023, employment was cooling and was less than 1% above the 10-year average at 752,000. While the number of vacancies for drivers is decreasing, employers are still wrestling with lower-than-average unemployment rates, indicating that the pool of experienced drivers seeking work is relatively small, THRC said. This underscores the need to recruit and train new drivers to meet the demand.
Following a significant drop in employment in Q1 2023, the number of workers in the trucking and logistics sector surged through the last three quarters of the year, peaking at 782,000 in November.
At the same time, the unemployment rate in the sector dropped from a high of 4.6% in March to just 3% in December.
Driver employment rose over the course of 2023, averaging 317,300 drivers. Driver unemployment peaked in April at 6.5%, but dropped sharply over the next three quarters, settling at 3.5% in December.
