The findings, which come from the Road Freight Haulage Survey and were officially published by the Department for Transport in November 2023, shed light on the evolving landscape of HGV driver employment in the UK.
Conducted quarterly, the survey provides an overview of trends in HGV driver vacancies, the impact on deliveries, pay adjustments and financial incentives within the industry.
One of the notable aspects revealed by the data is the consistent decline in HGV driver vacancies over the first 12 months of the survey, with rates stabilizing in the subsequent 12-month period. This decrease, from 43% to 23%, is a positive sign for an industry that has grappled with workforce shortages and its subsequent impact on operational efficiency.
While the reduction in vacancies is promising, the survey also highlights the challenges hauliers facing. The most common reason given for drivers leaving is the lure of ‘better pay or benefits elsewhere’, as reported by 42% of businesses with vacancies in Q3 2023. This highlights the ongoing competition for skilled drivers and the need for businesses to address remuneration structures to retain their driver pool.
The impact of driver shortages on deliveries is also markedly improved, with companies reporting missed deliveries due to driver shortages falling from 30% in Q4 2021 to 18% in Q3 2023. This consistent reduction, which has remained below 20% since late 2022, suggests a more stable and reliable transport network.
Wage trends in the HGV sector reveal a shift in business practices. While almost half of HGV businesses reported increasing driver wages in the final quarter of 2021, this figure fell to 17% in the third quarter of 2023. For those that did increase wages, the median hourly wage increase fell from £2.00 to £1.06 over the same period, demonstrating a nuanced approach to remuneration.
The survey also looks at financial incentives offered by HGV companies to recruit or retain drivers. The data shows a decline in the number of businesses offering such incentives, from 14% in Q4 2021 to 4% in Q3 2023. However, for those businesses that do offer incentives, the median financial incentive remains at around £500, with significant variation between businesses.
HGV driver vacancies
HGV businesses were also asked whether they had any driver vacancies at the time of the survey. The businesses with vacancies were then asked about the reasons which contributed to having vacancies.
HGV businesses on whether they had HGV driver vacancies between Q4 2021 and Q3 2023
Source: UK Department for Transport
This decline mainly took place over the first 12 months of the survey. Vacancy rates have been relatively stable over the most recent 12 months, at slightly above 20%.
“Job vacancies are not always an indicator of challenges in the job market because there are other factors such as retirements, new entrants, and movement between jobs. However, the high rate of driver vacancies at the start of the collection series is likely due to the UK facing an HGV driver shortage in late 2021″, the analysis stresses.
Reasons for drivers leaving the HGV driver job market
The 3 most common reasons are:
- ‘better pay or benefits elsewhere’, reported by 59% in quarter 4 2021
- ‘existing drivers leaving industry’, reported by 40% in quarter 4 2021
- ‘driver retirements’, reported by 36% in quarter 4 2021
The share of responses for these 3 reasons fell in quarter 3 2023, as other reasons were reported more frequently (see table below).
While there was variability in the reasons reported for driver vacancies in Q3 2023, ‘Better pay or benefits elsewhere’ remained the most frequently cited factor, accounting for 42% of businesses. Notably, two reasons increased in importance compared to the previous quarter: ‘Need for more drivers to take on new work’ and ‘New drivers not entering the profession’.
In a positive shift, only 2% of businesses reported ‘unavailability of HGV driving tests’ in Q3 2023, a significant decrease from 15% in Q4 2021. This change suggests that test availability is stabilising following the disruption caused by the COVID-19 pandemic.