Tuesday, November 16, 2021

Trucker shortages about jobs quality, not worker shortage

Time magazine recently ran a short analysis of the cause of America’s shortage of truck drivers. Presently, supply chain shortages are compromising Christmas shopping (Bob clutches pearls) and, according to employers and the government, the key factor is a lack of qualified truck drivers. This same narrative operates in Alberta and has been met with truck driver-training initiatives by the province.

What is interesting, according to the article, is that there is no shortage of people qualified to drive big rigs or interested in the doing so. In fact, the labour market is so flooded, employers are able to pick and choose who to hire. Naturally, employers use this loose labour market to grind wages and working condition.

Not surprising, the quality of the jobs on offer  is so poor that people quit. Annual turnover in big US trucking firms is an astounding 92%. The poor quality of jobs was triggered by the de-regulation of American trucking in the 1980s (thanks Reagan!).

I have not seen a similar study in Alberta. What I hear anecdotally is that the difficult nature of the job and low wages makes them unattractive jobs. Further, employers are often reluctant to hire new drivers (especially young ones) because of the high insurance costs associated with such drivers.

Spending tax dollars to train more drivers effectively subsidizes employer’s poor working conditions without necessarily improving the employment prospects of Albertans. Since the UCP has largely given up on evidence-based decision making and instead just shovels subsidies at their donor base (perhaps leavened with loosening the rules around hiring temporary foreign workers), I doubt we’ll see any change in this approach soon.

-- Bob Barnetson

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