IRU Warns of a ‘Demographic Time-bomb’ for Supply Chains Using Europe’s Roads
Truck driver shortages have had one of the biggest impacts on supply chain resilience in recent years and even though decreasing freight volumes has eased the problem in 2023, the longer-term outlook suggests the situation will worsen in the next five years. A new report by IRU, the International Road Transport Union, forecasts as many as seven million truck driver vacancies could be unfilled by 2028.
The IRU says the shortage of professional truck drivers is one of the most serious and critical challenges facing the transport industry and national economies – affecting goods transport operations in countries around the world, harming logistics supply chains and the consumers and businesses that depend on them.
In Europe, where GDP growth is projected to fall to 0.6% in 2023, down from 3.6% in 2022, high consumer prices and lagging wages have reduced consumers’ purchasing power, lowering demand for goods transport. Falling road freight rates since the end of 2022 reflect this downward trend, the IRU states.
However, in half of the 36 countries studied, over 50% of companies face severe or very severe difficulties filling truck driver positions.
One of the big causes of driver shortages is described in the IRU’s latest ‘Driver Shortage Report 2023 Freight – Global’ as a “demographic timebomb.” The share of drivers above 55 years of age is much higher than the share of drivers under 25 in most countries, reaching a third of the total driver population in Europe. An ageing population – particularly in Europe where less than 13% of workers are under 25 – partially explains driver shortages, suggesting that the available pool of national workers may not be sufficient to cover the gap.
The share of women drivers is also extremely low, making up just 6% or less of the truck driver population, the report says.
In 2023, 7% of truck driver vacancies in Europe are still available, representing a total of 233,000 job opportunities. By 2028, the IRU says, this is on track to increase considerably and could see companies operating across Europe facing a shortage of 745,000 truck drivers.
IRU Secretary General Umberto de Pretto said: “The structural issues behind truck driver shortages are continuing to impact transport services. With the rate of newcomers being significantly lower than drivers retiring every year, urgent action is needed now. We are missing over 3 million truck drivers in the countries we’ve examined. Given the demographics of the profession, we forecast that it could double within five years.
“The consequences of such a shortage are already harming the communities, supply chains and economies that depend on our industry. We cannot allow driver shortages to get any worse. Operators are doing their part, but governments and authorities need to increase efforts to improve working conditions and access to the profession. At least 50% of road transport operators have serious problems hiring skilled drivers, in most countries studied. Many are also unable to expand their business and are losing existing clients and revenues.”
To see the full report go to the IRU WEBSITE
