Global Trends in the Workforce
While customs and business practices may differ around the world, one thing remains constant: the need for good people to fill roles. This isn’t unique to any industry, but our industry sits in a unique position as it relates to the workforce. With how essential human presence is in supply chain operations, it is equally important to have workers with diverse talents – from manual labor and specific certifications to technical expertise. However, logistics companies across the globe are facing challenges ranging from aging workforces to labor shortages.
According to the Bureau of Labor Statistics, the median age of transportation and warehouse workers in 2024 was 43.3 years old. Trucking operators are especially impacted, as drivers skew even older. One recent study found that fewer than 12% of all truck drivers globally are 25 or under, while more than 25% are 55 and older.
An aging workforce will only deepen existing labor shortages as fewer young workers replace retirees. We are starting to see this trend as the baby boomer generation exits the workforce, creating ripple effects beyond just needing to fill open positions. Many leaders are also retiring, especially in the United States, leading to turnover among decision-makers. At Scarbrough, we’ve seen longtime client contacts retire after decades in leadership. New leaders often bring new expectations and working styles, which presents both an opportunity to adapt and be flexible with service offerings and deliverables, it is also proving to be a shift in how business is done across the industry.
Another hurdle in filling roles is the growing need for specific skills. As technology and automation continue to permeate through the industry, the need for workers who are qualified to work with these advanced technologies also grows. This disconnect is also contributing to the difficulty companies are facing to fill open roles. In an industry that has historically been hands-on and conventional in its practices, the surge in technology has led to a disparity in capable workers who are also comfortable working with the newer developments.
The technical skills required are wide-reaching, too. Robotics and automated machinery require extremely forward-thinking leaders to help ensure processes continue running smoothly. But even the less futuristic advances require a level of skill and comfortability with digital platforms that wasn’t expected in the past. Roles like warehouse staffers and truck drivers, once largely manual, now interact with technology daily, narrowing the qualified hiring pool for these positions.
It isn’t just skill gaps leading to shortages, either. The physical and lifestyle demands of trucking and warehouse work can deter young workers as well. Long days on the road or physically taxing shifts may not align with modern expectations for flexibility and balance. Younger generations especially are putting more of an emphasis on work-life balance, often leading them away from industries like logistics where you’re never fully off the clock.
Countries in the Far East, like China and Uzbekistan, are attracting younger workers. In Uzbekistan, around 25% of all truck drivers are 25 or younger. The U.S., Argentina, China, and Mexico are also beginning to skew younger in recent years, showing potential stabilization.
There are still qualified candidates out there, but companies are being forced to look harder than before and, in some cases, offer better pay and benefits to attract top talents.
Luckily, it’s not all bad news on the labor front. Countries in the Far East, like China and Uzbekistan, are attracting younger workers. In Uzbekistan, around 25% of all truck drivers are 25 or younger. The U.S., Argentina, China, and Mexico are also beginning to skew younger in recent years, showing potential stabilization.
Employers and governments are also trying to do their part to address the shortages and bring on diverse staffs. From offering better pay to enhancing training and onboarding solutions, organizations are investing in more resources to ensure new employees feel supported. Companies like XPO and FedEx have adjusted their strategies and seen tangible results. XPO, for example, has successfully recruited veterans and their spouses, while FedEx has increased hourly wages for package handlers and introduced referral bonus programs and added flexible shift swapping which has helped keep existing employees happy and rejuvenated.
While technology and automation are valuable tools, humans remain the more integral part of the global supply chain. As an industry, we need to ensure we don’t lose sight of that fact and continue to focus on treating our workers like the linchpins they are.
As the AI provider Raft says, “The future of freight forwarding is human.”
Scarbrough Global
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