A SNAPSHOT OF THE CANADIAN LABOUR MARKET

Shortages still plague logistics sector hiring

Estimated labour shortages, selected key occupations, trucking and logistics sector, Q3 2022

Truck driver shortage and recovery

In the third quarter of 2022, Canada’s truck driver labour force amounted to close to 320,000 drivers including those who are fully employed or who are actively seeking work. 60 percent of these drivers work directly in the truck transportation sector, with the remaining 40 percent working in industries such as construction, agriculture, mining and oil & gas extraction, manufacturing, wholesale and retail trade, and more.

“ Even before the pandemic, the driver shortage was threatening growth. In 2020, Trucking HR Canada estimated that the driver shortage was costing the truck transportation industry as much as $3.1 billion in lost revenues every year. And other sectors are experiencing the impact of the driver shortage too. For example, the Forestry Products Association of Canada estimates that the truck driver shortage is costing their industry about $450 million in lost business.”

Angela Splinter, CEO of Trucking HR Canada

Rising wages

According to Normandin Beaudry’s latest report, 48 percent of organizations changed their projected salary increases for the coming year. In Canada, the average budget was higher than initial forecasts and historical twenty-year trends, increasing from 3.8 percent leading up to last summer to 4.2 percent in fall 2022, excluding wage freezes.

Regional success

“Despite volatile economic conditions, organizations are continuing to invest in their pay raise budgets to adapt to an extremely competitive job market,” said Darcy Clark, senior principal, compensation at Normandin Beaudry.

Although the number of companies in Greater Montreal between 2012 and 2021 decreased from 6,297 to 6,089, the total number of jobs in transportation and warehousing increased by nearly 24 percent, from 43,700 to 54,100. In terms of indirect jobs, namely the role of logistics at manufacturers, wholesalers and retailers, we can factor in about 75,000 additional jobs, for a total of close to 130,000 jobs in Greater Montreal.