Insights and tips for the labor shortage in transportation & logistics

Labor shortages in some industries aren’t new, but additional factors caused shortages to increase substantially from levels before the COVID-19 pandemic.

Though the unemployment rate was significantly lower in May 2022 than at its April 2020 peak of 14.7%, organizations across transportation and logistics and many other industries struggle to hire.

Explore key insights and strategies below if your organization has been affected by these shortages.

How is the labor shortage affecting the transportation and logistics industry?

From a driver shortage in the transportation industry to a lack of workers at ports and in warehouses, the impact of the labor shortage on transportation and logistics is one of the biggest factors in the supply chain crisis.

Trucking struggled with a labor shortage for many years and organizations try to tackle this in a variety of ways.

Root causes

Aging workforce

Many employees in the transportation industry are 45 and older. Typically, as older employees retire, a younger workforce will replace them. This isn’t the case with transportation.

Work priorities

Workers that the transportation industry used to rely on to fill vacancies are choosing positions in warehouses, factories, and plants where they can remain at home rather than spending days or weeks on the road.

COVID-19

Demand for workers increased during the pandemic. However, like hospitality and retail industries, federal benefits packages allowed workers to evaluate their work situation.

For an industry that doesn’t offer many work-from-home options, work conditions, pay, and benefits could be a deciding factor.

What strategies can your organization use to manage the labor shortage?

To fill immediate needs, organizations have options that span short-, medium-, and longer-term strategies — from reducing hiring requirements to developing local work programs.

Short-term strategies

• Consider contractors.