The Driver Shortage: Issues and Trends An independent analysis of professional drivers in the UK logistics sector Prepared for FTA by RepGraph Ltd October 2016 Contents DriverShortageKeyPerformanceIndicators.........................................................................2 ReportSummary...................................................................................................................3 EmploymentinUKLogistics..................................................................................................4 LGVDrivers:EmploymentandClaimantCount......................................................................5 EmploymentofLGVdriverscomparedtogeneralemployment..................................................5 LGVdriveremploymentbycountryandregion...........................................................................6 LGVdriverclaimantcount............................................................................................................7 DriverShortageNumber.......................................................................................................8 LabourForceSurveystatistics–drivershortagenumber............................................................8 LGVDriverEmploymentStatus.............................................................................................8 Driverjobturnover.......................................................................................................................9 Driverturnovercalculation........................................................................................................10 Churnwithintheindustry..........................................................................................................10 DriverPayandConditions....................................................................................................11 Paymeasures.............................................................................................................................11 Measuresofworkinghours........................................................................................................12 LGVDriverAge:AProfessionDominatedbyOlderMaleDrivers..........................................13 AverageageforLGVdrivers.......................................................................................................13 LGVdriveragecomparedtogeneralpopulation.......................................................................13 Gender........................................................................................................................................14 NewEntrantsandTestPassRate.........................................................................................14 Initialqualification......................................................................................................................14 LGVdriverapprenticeships........................................................................................................15 LGVpassrate..............................................................................................................................15 Age.........................................................................................................................................16 Gender...................................................................................................................................16 ProblemsRecruitingProfessionalDrivers.............................................................................17 DriverShortage:BarriersandSolutions................................................................................17 The Driver Shortage: Issues and Trends 1 DriverShortageKeyPerformanceIndicators Indicators 2012 2013 2014 2015 2016 35,189 69,551 52,720 43,087 34,567 48.1 47.9 48.0 48.0 47.9 TotalnumberofLGVdriversin employment 290,000 259,000 285,000 299,217 315,495 NumberofEULGVdriversinemployment 18,247 16,562 19.062 25,109 31,542 6.3% 6.4% 6.7% 8.4% 10.0% 1,817 1,011 1,034 2,735 3,780 Percentageofnon-EULGVdriversin employment 0.63% 0.39% 0.36% 0.91% 1.20% LGVdriverchurn 7.7% 7.1% 9.8% 9.7% 5.8% Workingpopulationchurn 4.2% 4.1% 4.4% 4.9% 4.5% LGVdriverpaygrossweekly £471 £484 £494 £505 £519 Numberofdriversclaimingjobseekers allowance* 6,400 4,885 2,220 1,055 620 Numberofapprentices 7,620 5,510 4,000 4,930 5,470** NumberofLGVpracticalteststaken 46,549 46,246 48,283 55,161 70,233 Numberofpracticaltestspassed 24,401 24,498 26,224 30,574 39,000 43% 54% 67% 82% 76% Drivershortagenumber AverageageofLGVdriver PercentageofEULGVdriversin employment Numberofnon-EULGVdriversin employment Levelofdifficultyrecruitingdrivers (QTAS)*** *FiguresforMayeachyear(i.e.midpointofQ2) **Provisional ***FromQ2ofeachyearfortheFTAQTASsurvey 2 The Driver Shortage: Issues and Trends 2 ReportSummary 1. Thedrivershortageiscurrentlyestimatedat35,000LGVdrivers 2. TheaverageageofanLGVdriveris47.9years(downfrom48.1lastyear).Overthelast 15yearstherehasbeenasteadyincreaseinaveragedriverage,risingfrom45.3years in2001to48yearsatthepresenttime 3. Around64percentofLGVdriversare45yearsorolder.Only2percentofemployed driversareunder25whereas10percentofthetotalemployedpopulation(ofworking age)isunder25 4. ThenumberofLGVdriversinemploymenthasincreasedby5percentcomparedto lastyear 5. ThenumberofLGVdriversclaimingJobseeker’sAllowanceinQ22016was620.By August2016,thenumberhadfallenfurtherto530whichdown38.4percentfroma yearagoand96.5percentlowerthanthepeakof15,255inMarch2009duringthe economicdownturn 6. 5,470peoplestartedapprenticeshipprogrammeslearningtodrivegoodsvehiclesin 2015/16whichisanincreaseof11percentcomparedto2014/15butis28percent lowerthan2011/12. 7. 36,615drivers(bothLGVandPCV)acquiredaDCPCthroughtheinitialqualification fromApril2015toMarch2016–anincreaseof22percentonthepreviousyear 8. ThenumberofpracticalLGVpracticalteststakenintheyeartoendofMarch2016 increasedto70,233whichis27percenthigherthanlastyearandisnowatprerecessionlevels.Althoughthepassratehasgraduallyimprovedsincefinancialyear 2007/2008,onlyjustoverhalfoftesttakerspass 9. IntheyeartotheendofMarch2016,overhalf(58percent)ofalltestsweretakenby thoseundertheageof35.Theaverageageofapersontakingapracticaltestwas34 10. FTAmembersreportedaroundthesamelevelofdifficultyinrecruitingdriversinthe secondquarterof2016comparedtothepreviousquarter.InQ22009however,just over20percentofrespondentshadproblemsrecruitingLGVdrivers,thishasnow increasedtoaround76percentinQ22016 Note:Inrecentyearsthetruckandcoachlicensingcategorynameshavechanged.HGV(Heavy GoodsVehicle)isnowLGV(LargeGoodsVehicle).ForconsistencyinthedocumentthetermLGV isused. 3 The Driver Shortage: Issues and Trends 3 EmploymentinUKLogistics Table1providesabreakdownofemploymentinUKlogistics.1Thetotalnumberofpeople employedinlogisticsoccupationsand/orworkingforcompaniesinthelogisticssectorisnow around2.5million. Table1:Broaddefinitionofemploymentinlogistics:numbersandpercentagesemployed Employment* Logistics Allother Total sector sectors Purchasingmanagersand 8,501 49,587 58,088 directors (5,181) (49,870) (55,051) Managersanddirectorsin 37,795 42,520 80,315 transportanddistribution (34,326) (44,688) (79,014) Managersanddirectorsin 34,954 74,371 109,325 storageandwarehousing (26,554) (57,641) (84,195) 5,160 1,935 7,095 Importersandexporters (5,181) (5,829) (11,010) Transportanddistribution 25,985 42,798 68,783 clerksandassistants (24,611) (38,859) (63,470) 209,861 105,634 315,495 LargeGoodsVehicledrivers (188,468) (110,749) (299,217) 112,637 138,631 251,268 Vandrivers (88,729) (107,511) (196,240) 31,109 65,921 97,030 Fork-Lifttruckdrivers (30,440) (55,698) (86,138) Postalworkers,mailsorters, 133,372 28,234 161,606 messengersandcouriers (127,588) (29,145) (156,733) Elementarystorage 176,346 223,074 399,420 occupations (161,914) (229,918) (391,832) Otheroccupationswithin 996,003 996,003 N/A theLogisticsSector (927,443) (927,443) 1,771,723 772,705 2,544,428 Total (1,620,435) (729,908) (2,350,343) *NumbersinroundbracketsareforQ22015,providedforcomparison **Percentagesinsquarebracketsareproportionoftotal Logisticsoccupations % 2% (2%) 3% (3%) 4% (4%) 0% (0%) 3% (3%) 13% (13%) 10% (8%) 4% (4%) 6% (7%) 16% (17%) 39% (39%) 100% UK Nationality** EU Other 52,556 [90%] 71,118 [89%] 102,884 [94%] 5,054 [71%] 66,403 [97%] 280,173 [89%] 223,232 [89%] 74,286 [77%] 146,264 [91%] 296,371 [74%] 861,940 [87%] 2,180,281 [86%] 2,090 [4%] 7,425 [9%] 4,836 [4%] 705 [10%] 2,380 [3%] 31,542 [10%] 22,378 [9%] 20,466 [21%] 12,181 [8%] 92,867 [23%] 94,070 [9%] 290,940 [11%] IntheyearfromQ22015toQ22016thelogisticssectoraddedover150,000jobstothe economyandwhen‘allothersectors’areincluded,employmentinlogisticsincreasedbyover 190,000.Thisreflectsthesteadyincreaseinlabourdemandoverthelast2-3years. TheLGVdriverpopulationhasexpandedby15,000(5percent)thisyear,helpingtoreducethe driverdeficit.Non-UKnationalsrepresent11percentoftheLGVdriverpopulation:1percent arenon-EUnationalsand10percentareEUnationals.Ofthe10percentofdriversfromthe EU,themajoritycomefromEasternEuropeandinparticularPoland,RomaniaandHungary. Theproportionofthepopulationwhoidentifybeingavandriverastheirmainoccupationhas risenappreciablyby28percentovertheyear.InQ22015,vandriversaccountedfor8per centofjobsinlogisticsbutthishasgoneupto10percentthisyear;anincreaseofover 55,000.Around11percentofvandriversarenon-UKnationalsandEUnationalsrepresent9 percentofthelogisticsvandriverpopulation(around22,000drivers). 1 Source:RepgraphanalysisofONSLabourForceSurveyforQ2,2016 4 The Driver Shortage: Issues and Trends 4 3,442 [6%] 1,772 [2%] 1,605 [1%] 1,336 [19%] 0 [0%] 3,780 [1%] 5,658 [2%] 2,278 [2%] 3,161 [2%] 10,182 [3%] 39,993 [4%] 73,207 [3%] Intotal,around365,000non-UKnationals(14percentoflogisticsworkers)areemployedin logisticsandnearly300,000(11percent)areEUnationals.Byproportion,mostEUnationals areemployedinwarehousingandstoragerelatedoccupations.EUnationalsrepresent21per centoftheforkliftdriverpopulation(around20,500drivers)and23percentofelementary storageoccupations(around93,000jobs). LGVDrivers:EmploymentandClaimantCount EmploymentofLGVdriverscomparedtogeneralemployment2 Numberofjobs(normalisedtoQ2-2001) InQ22016accordingtotheONSLabourForceSurvey,therewere315,495peopleemployed asLGVdrivers,comparedwith321,455professionaldrivers10yearsearlier(areductionof2 percent).Atthesametimenationalemploymentstatisticsindicatedthattherewereatotalof over31.66millionjobsinJune2016comparedto29.10million10yearsearlier,whichisan increaseof9percent. Whiletotalemploymentnumbershaveincreasedoverthelast15yearstherehasbeena significantfallintheproportionofLGVdrivers(droppingby15percentfrom2001to2013, butrecoveringsomewhatsincethen).ThenumberofLGVdriversinemploymentincreased overtheperiodfromQ22015toQ22016(upby5percent),butthiswasinlinewitha reductioningeneralunemploymentduetoimprovedeconomicconditionsandisstilljust below2007pre-recessionlevels(Figure1). Figure1:LGVdriversinemploymentcomparedtogeneralemployment 1.20 1.15 1.10 1.05 1.00 0.95 Totalnumberof Jobs 0.90 NumberofLGV Drivers 0.85 0.80 2 Source:ONSLabourForceSurveyEmploymentstatusbyoccupation,tablesEMP04andEMP16Q22001-Q22015 5 The Driver Shortage: Issues and Trends 5 LGVdriveremploymentbycountryandregion NearlyonehalfofdriversareemployedinCentralandNorthernEnglandwiththelargest proportionworkingintheNorthWestofEngland(Figure2).Theregionthatemploysthe highestproportionofLGVdriversisNorthWestEngland.Perhapsunsurprisingly,Northern Irelandhasthesmallestproportionofdrivers(3percent),followedbyWales. Figure2:PercentageLGVdriveremploymentbycountry/region 6 The Driver Shortage: Issues and Trends 6 LGVdriverclaimantcount ThenumberofLGVdriversclaimingJobseeker’sAllowanceinQ22016was620(takingthe monthofMayasthemid-pointforQ2).ByAugust2016,thenumberhadfallenfurtherto530 whichis down38.4percentfromayearago.AccordingtotheUKLabourMarketstatistics publishedbytheONStheUKclaimantcount3wasslightlyhigher(0.3percent)inAugust2016 comparedtoJuly4.Atthesametime,thetrendforLGVdriversclaimingJobseeker’sAllowance continueditsdownwardtrajectory,fallingby7.0percentinthesameperiod.FortheUKasa whole,theclaimantcountwas771,000,downbyonly2.7percentfromayearago. ThisstatisticshowsthatlabourmarkettrendsforLGVdriversintheUKisoutofstepwith generallabourmarkettrends.Onthesurfacethismayseemlikegoodnews,butinreality thereisanever-shrinkingpoolofactivejobseekersfromwhichtosourcedrivers.Thecurrent LGVdrivers’claimantcountis96.5percentlowerthanthepeakof15,255inMarch2009 duringtheeconomicdownturn,almostdoublethatoftheUKasawholeinthesameperiod. 400,000 16,000 350,000 14,000 300,000 12,000 250,000 10,000 200,000 8,000 150,000 6,000 100,000 4,000 50,000 2,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ClaimantCount LGVdriversclaimantcount NumberofLGVdrivers Figure3:EmploymentandunemploymentofLGVdrivers,UnitedKingdom,Q220165 0 Numberinemployment 3 PeopleoutofworkclaimingJobseeker’sAllowanceorUniversalCredit Sources:Nomis-Claimantcountbyoccupation(Augustfigures)14September2016 5 Sources:Nomis-Claimantcountbyoccupation(Mayfigures)15June2016andONSLabourMarketStatistics- TableEMP04:AllInEmploymentByStatus,Occupation&Sex(Q2figures)17August2016 4 7 The Driver Shortage: Issues and Trends 7 DriverShortageNumber Thedrivershortagenumberisestimatedbycomparingjobgrowthforthegeneralpopulation withLGVdriversbasedonONSLabourForceSurveystatistics. LabourForceSurveystatistics–drivershortagenumber AnanalysisoftheofficialONSLabourForceSurveydataestimatesthatthecurrentdriver shortagefigureis34,567. LabourForceSurveyanalysis 1. 2. 3. 4. 5. 6. In2001therewereestimatedtobe305,629LGVdrivers. AsofJune2016therewere315,495LGVdrivers. Atthesametime,thetotalUKeconomyhadadded14.5percentmorejobscomparedto2001. AssumingthattheindustriesemployingLGVdrivershavetrackedtheeconomyasawholein termsofdemandforjobs,thenthereshouldbea14.5percentincreaseinthedemandforLGV driverssince2001. Thisequatesto350,062LGVdriversrequired.Thereforetheshortfallinthenumberofdrivers isestimatedtobe350,062–315,495=34,567asofmid2016. Thisislikelytobeaconservativeestimatesincetheriseine-commerceandhomedeliveryin recentyearsislikelytohaveexacerbateddemandforLGVdriverscomparedtomanyother vocations. LGVDriverEmploymentStatus Figure4showstheemploymentstatusoftheUK’sLGVdrivers.6 Figure4:LGVdriveremploymentstatus 9% Self-employeddrivers Driverswhoareemployees 91% InQ22016,9percentofrespondentsindicatedthattheywereself-employedwhilst91per centstatedthattheywereemployees.Thiscomparestoonly6percentwhowereselfemployedin2009duringtherecession.7Thisisprobablycausedbytheimprovementinthe economycreatingmoreopportunitiesfordriverstosetupontheirown.Theincreased proportionofself-employeddriversmaybecontributingtothedifficultiescurrently experiencedbyfirmsinrecruitingpermanentLGVdrivers.PerhapsnotsurprisinglymostLGV driversworkfulltime(Figure5).8 6 Source:LabourForceSurvey,Q22016 Source:LabourForceSurvey,Q22009 8 Source:LabourForceSurvey,Q22016 7 8 The Driver Shortage: Issues and Trends 8 Figure5:LGVdriversinfullandparttimework 5% Fullnme Partnme 95% InQ12016,95percentofrespondentsstatedthattheyworkedfulltimeand5percentpart time.TherewasnochangecomparedtoQ22009attheheightoftherecession,whenthe sameproportionreportedthattheywereworkingfulltime.Theconsistentlysmallproportion ofparttimeworkingisprobablyduetojobworkpatternsmakingitverydifficulttoemploy LGVdriversonaparttimebasis. NinetysevenpercentofLGVdriverswereinapermanentjobinQ22016,9highlightingthe largeamountofworkavailableandthelargedemandforLGVdriversatthemoment.Agency workerscontinuetorepresentasmallproportionofLGVdrivers.InQ22016only3percentof respondentsstatedthattheywereagencyworkers,10reflectinglowdemandcurrentlyfor agencystaff,asemployersprefertotakeonpermanentLGVdrivers. Driverjobturnover MostLGVdrivershaveremainedwiththesameemployerforarelativelylongperiodoftime. Figure6showslengthoftimeincurrentjobasofQ22016. Figure6:LGVdrivers:Timeincurrentjob Percentageofresponses 25% 20% 15% 10% 5% 0% Alargemajorityhavebeeninthesamejobformorethantwoyearsandmorethanhalfhave beeninthesamejobformorethanfiveyears,whichisinlinewiththetrendacrossthe generalworkingpopulation.11 9 Source:LabourForceSurvey,Q22016 Source:LabourForceSurvey,Q22016 11 Source:LabourForceSurvey,Q22016 10 9 The Driver Shortage: Issues and Trends 9 Driverturnovercalculation Eachyear,theQ2LabourForceSurveyincludessupplementaryquestionsnotcontainedinthe otherquarters,suchas‘occupationayearpreviously’.Thesedataareusedtoestimatedriver turnover: DriverTurnoverCalculations 1. 2. 3. 4. 5. ThenumberofLGVdriversinQ22015was299,217 NumberofLGVdriversinQ22016was315,495 Thisrepresentsa5percentnetincreaseinthenumberofLGVdriversfromQ22015toQ2 2016 ThemeannumberofLGVdriversovertheperiodfromQ22015toQ22016was307,356 InQ220169,155or3percentLGVdrivershadlefttheindustryforanotherjobwithinthe year(9,155/307,356) Theresultsshowthatdespitethe3percentattritionovertheperiod,therewasanet5per centextraLGVdriverjobscomparedtoayearearlier.Thisisindicativeofcontinuedstrength inthedemandforLGVdriversthathasbeenbuildingsincetheendofthelastrecession.The challengefortheindustryremainshowtoretainalargernumberofdrivers. Churnwithintheindustry IntheQ22016LabourForceSurvey41,550LGVdriversindicatedthattheyhadbeenintheir currentjobforlessthanoneyear.Atthesametime,around4.5millionpeopleinthenational workingpopulationwerealsointheirpresentpostforlessthanayear. ThefollowingchartillustratesthejobchangedetailsforLGVdrivers. Figure7:LGVdriverchurn 13,380 Movedfromonedrivingjobtoanother 18,310 Wereinanon-driverjobayearago Unknownwhatjobwasayearago 9,859 EvenaccountingforthelargeproportionofLGVdriverswhoseoccupationayearearlierwas unknown,18,310ofthosedriverswhohadbeeninpostforlessthanoneyearhadmoved fromonedrivingjobtoanother.ThisequatestoaconservativeestimateofLGVdriverchurnof 5.8percent(18,310/315,495).Thesamefigureforthegeneralworkingpopulation(i.e.for same-vocationannualchurn)is4.5percent. ItishoweververyencouragingthatLGVdriverchurnhasdecreasedtoitslowestlevelinthe lastfiveyears,havingpeakedin2014whentheeconomicrecoverywasdrivingdemandata greaterratethanperhapsitisnow. 10 The Driver Shortage: Issues and Trends 10 Table2:LGVDriverchurnforthelast5years Year 2012 2013 2014 2015 2016 LGVDriverChurn% 7.7 7.1 9.8 9.7 5.8 Workingpopulationchurn% 4.2 4.1 4.4 4.9 4.5 The2016figurenonethelessdemonstratesthatalthoughchurnofLGVdrivershasdecreased inrecentyears,professionaldriversarestillmovingjobsatagreaterratethanthenational averagefortheworkingpopulation(29percentgreaterchurninLGVdriversthanchurnacross allvocationsthisyear).FindingwaystoretainLGVdriversinthesamejobisthereforeabig challengeforthelogisticsindustry.12 DriverPayandConditions TheLabourForceSurveyasksparticipantsaboutvariousaspectsoftheirpayandemployment conditions,includingaverageweeklyandhourlypayaswellashoursworkedandovertime. ThissectionpresentstheresultsoftheanalysistothesequestionsforLGVdrivers. Paymeasures TheLabourForceSurveyincludesseveralmeasuresofpay.Thefollowingtableprovidesdetails forthemostinformativepaymeasures: Table3:LGVdriverpay Grossweeklypay Netweeklypay Grosshourlypay Basichourlyrate Responses 110 109 107 50 Q22015 Mean £505 £402 £10.31 £10.26 Median £486 £403 £10.00 £10.00 Responses 109 111 106 48 Q22016 Mean £519 £416 £10.82 £10.22 Median £538 £415 £10.60 £9.50 %change* +2.8 +3.5 +4.9 -0.3 *meanpay GrossandnetweeklypayroseabovetherateofRPIinflationasdidgrosshourlypay,which wasupbynearly5percentonthepreviousyear.Basichourlyrateswerebroadlyunchanged, indicatingthatgrosshourlypayincreaseshaveprobablyarisenfromincreasedovertime remuneration(althoughitshouldbenotedthatbasichourlyrateiscalculatedusingasmaller samplesize).Overall,theresultsindicatethatdriverpayincreasesarestilloutpacinginflation. Analysisofaveragegrosshourlyandweeklypayforeachagebandrevealedthatwageswere significantlyhigherfordriversovertheageof30.Forthe20-29yearoldagebracket,the averagegrossweeklypaywasaround£480,butthiswasaround£550forthe30-39age bracket(15percenthigher).Beyondtheageof40,therewasnosignificantchangeingross weeklypay. Thelargepaysteparoundtheageof30probablyreflectstheextravalueemployersplaceon moreexperiencedLGVdrivers.Itshouldhoweveralsoserveasanincentivetoyoungerpeople joiningtheprofession,whocanexpecttheirearningstorisesignificantlyiftheyremainwithin theindustryforjustafewyears. 12 Source:LabourForceSurvey,Q22016 11 The Driver Shortage: Issues and Trends 11 Risingpressureonstartingsalaries ForQ22016theaverageweeklygrosspayforthosewhoheldtheirjobforlessthanayearwas £425.17comparedto£403.33ayearearlier,anincreaseof5.4percent.Thisriseiswellabovethe rateofinflationandnearlydoubletheaverage2.8percentincreaseinaveragegrossweeklypay, indicatingacurrentupwardpressureonstartingsalaries,possiblycausedbydifficultiesinrecruiting LGVdrivers. Measuresofworkinghours WorkingtimeiscapturedviaanumberofvariablesintheLabourForceSurvey,includingusual andbasicweeklyhoursofworkaswellasusualweeklyhoursofovertime. Table4:LGVdriverhours Usualhours: Excludingovertime Includingovertime Paidovertime Unpaidovertime Responses 257 183 181 186 Q22015 Mean 45.3 51.7 8.2 0.75 Median 45 50 7 0 Responses 240 183 184 187 Q22016 Mean 45.4 52.2 8.3 0.52 Median 45 51 8.0 0 %change 0.2% 1.0% 1.2% -30.7% Hoursofworkbothincludingandexcludingovertimeincreasedmarginallyhoweverhoursof unpaidovertimedecreasedinthesameperiod.Amajorityofrespondentsreportedthat overtimewaspaidatmorethantheirbasicpayrate(78percent)with22percentbeingpaid overtimeatthesamerateastheirbasichours.Sixtyonepercentreportedthattheywerepaid atafixedhourlyrateand39percentatavariablerate. Asmallmajorityreportedthattheirhoursofworkvaryfromweektoweek(198outof352in Q22016)whilstlessthan5percentstatedthattheywouldliketoworklongerhoursat currentbasicpay. 12 The Driver Shortage: Issues and Trends 12 LGVDriverAge:AProfessionDominatedbyOlderMaleDrivers AverageageforLGVdrivers Overthelast15yearstherehasbeenasteadyincreaseinaveragedriverage,risingfrom45.3 in2001to47.9atthepresenttime(Figure8).Itishoweverencouragingtonotethatthe averagedriveragehaslevelledoff,decreasingveryslightlyfromlastyear. Figure8:AverageageofLGVdriverpopulationoverthelast15years 49 AverageLGVdriverage 48 47 46 45 44 Source:QuarterlyLabourForceSurveys,2001-2016(Q2foreachyear) LGVdriveragecomparedtogeneralpopulation DataonagedemographyfromtheLabourForceSurvey(Q22016)revealedthatover64per centofLGVdriversare45yearsorolder.13Thisisvastlydifferenttotheeconomy-wide demographics,wherethepopulationaged45yearsorolderinemploymentwasfoundtobe aroundhalf(Figure9).Only2percentofemployeddriversareunder25(thisisupfrom1per centlastyear),whereasover10percentofthetotalemployedpopulationisunder25.The largenumberofLGVdriversovertheageof65(around21,000)alsopointstocontinued pressuresondriverrecruitmentinordertobackfillpositionsvacatedduetorecent retirements. Source:QuarterlyLabourForceSurvey,Q22016 13 13 The Driver Shortage: Issues and Trends 13 Figure9:Agedemographicsforprofessionaldriverscomparedtothegeneralpopulation 60 Percentageoftotal(%) 50 16-24 40 25-34 30 35-44 45-59 20 60-64 65+ 10 0 LGVdriver Generalpopulanon Source:QuarterlyLabourForceSurvey,Q22016 Gender LabourForceSurveydataindicatesthattheLGVdriverprofessioncontinuestobedominated bymen.Theapproximateestimateisconsistentlyaround1percentforfemaledriversinthe populationhowever,thesmallnumberoffemaledriverrespondentspreventsamoreaccurate measure.InthesampleofLabourForceSurveyrespondentsinQ22016,only3(0.7percent) werefemale. NewEntrantsandTestPassRate Initialqualification ThefiguresfordriversacquiringDCPCthroughtheinitialqualification(whichrepresentsnew entrantstotheindustrywhodidnotholdacategoryClicencepriorto10September2009)are providedinTable5.Therewasa22percentincreaseinnewentrantsfortheyearending March2016comparedtothepreviousyear. Table5:Initialqualification Financialyear April08–March09 April09–March10 April10–March11 April11–March12 April12–March13 April13–March14 April14–March15 April15–March16 14 DCPCinitialqualification 3,948 7,524 12,104 14,003 16,511 21,054 30,025 36,615 14 https://www.gov.uk/government/statistics/driver-certificate-of-professional-competence-cpc-statistics 14 The Driver Shortage: Issues and Trends 14 LGVdriverapprenticeships LatestfigurespublishedinApril2016bytheSkillsFundingAgencyandtheDepartmentfor Business,InnovationandSkillsprovisionallyindicatedthatforthe12monthsfromAugust 2015toAugust2016,5,470peoplestartedapprenticeshipprogrammeslearningtodrivegoods vehicles.15whichisanincreaseof11percentcomparedto2014/15butis28percentlower than2011/12. Table6:LGVdriverapprenticeshipnumbers Year Count 2011/12 7,620 2012/13 5,510 2013/14 4,000 2014/15 4,930 2015/16 5,470* *provisional LGVpassrate ThepassrateforLGVdriversimpactsonthenumberofdriversinemployment.Thenumberof practicalteststakenintheyeartotheendofMarch2016increasedby27percentcompared tolastyearandisnowbacktopre-recessionlevels.Overallthenumberofteststakenhas increasedby60percentsincethelowof2010/11.Althoughthepassratehasgradually improvedsincefinancialyear2007/2008,onlyjustoverhalfoftesttakerspass(Table7).16 Table7:Practicallargegoodsvehicle(LGV)test,17GreatBritain:2007/08to2015/16 Year 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Tests 70,766 65,852 46,426 43,894 46,549 46,246 48,283 55,161 70,233 Passes 32,779 32,298 23,876 22,664 24,401 24,498 26,224 30,574 39,000 18 %passrate 46.3% 49.0% 51.4% 51.6% 52.4% 53.0% 54.3% 55.4% 55.5% 15 https://www.gov.uk/government/statistical-data-sets/fe-data-library-apprenticeships https://www.gov.uk/government/statistical-data-sets/drt05-practical-large-goods-vehicles-LGV-test-pass-rates 17 IncludestestcategoriesC,C1,C+E,C1+E 18 Source:DfT2016Practicallargegoodsvehicles(LGV)testpassrates(DRT0501) 16 15 The Driver Shortage: Issues and Trends 15 Age IntheyeartotheendofMarch2016,overhalf(58percent)ofalltestsweretakenbythose undertheageof35.Inadditiontheaverageageofapersontakingapracticaltestwas34. Figure10:AgebreakdownforthenumberofpracticalLGVtestsconducted19 Gender ThenumberofwomentakingthepracticalLGVtesthasremainedbetween6and7percentof alltesttakerssince2008.Thepassrateforwomenishoweverconsistentlyhigherthantheir malecounterparts. Table8:Passratesformenandwomen Year 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Malepassrate 46% 49% 51% 52% 52% 53% 54% 55% 55% Femalepassrate 48% 52% 55% 53% 54% 53% 59% 59% 58% 19 Source:DfT2016Practicallargegoodsvehicles(LGV)testpassrates(DRT0503) 16 The Driver Shortage: Issues and Trends 16 ProblemsRecruitingProfessionalDrivers Percentageofrespondentsreporgng problemsinrecruigngdrivers AccordingtoFTA’sQuarterlyTransportActivitySurvey(QTAS)July2016,FTAmembers reportedaroundthesamelevelofdifficultyinrecruitingdriversinthesecondquarterof2016 comparedtothepreviousquarter.InQ22009however,justover20percentofrespondents hadproblemsrecruitingLGVdrivers;thishasincreasedtoaround75percent(Figure11). Figure11:Problemsinrecruitingprofessionaldrivers 100 90 80 70 60 50 40 30 20 10 0 DriverShortage:BarriersandSolutions InJune2016,FTAconducteditsannualTransportManagerSurveyandfoundthatover46per centofrespondentsreportedthatinrecentmonthstheywereeitherunabletofillLGVdriver vacanciesorhadexperiencedlongdelaysindoingso.Only24percentoftransportmanagers reportedthattheyhadexperiencednoissuesatall. AmajorityoftransportmanagersanticipatedashortageofLGVdriversinthenearfuturewith mostblamingretirementasthegreatestcontributingfactor(Figure12). Figure12:ReasonsforanticipatedshortageofLGVdriversinthecomingmonths Driversrenring Lackofapprennces/trainees DriverCPC Upturnintheeconomy 0% 10% 20% 30% 40% 50% 60% Percentageofresponses 17 The Driver Shortage: Issues and Trends 17 ‘Financialcostofacquiringalicence’wasrankedasthegreatestbarriertodriverrecruitment, followedbypoorindustryimageandlackofapprenticeshipschemes(Figure13). Figure13:Barrierstodriverrecruitment Financialcostofacquiringalicence Poorindustryimage Lackofapprennceshipschemes PassingtheLGVpracncaldrivingtest Youngdriverinsurancepremiums Lackofcareersadvice DriverCPC 1 2 3 4 5 6 7 1=smallestbarrier7=greatestbarrier Respondentsindicatedthatincreasingtheavailabilityandfundingforapprenticeshipswasthe mostimportantmeasuretoaddresstheproblemofrecruitmentanddeployment(Figure14). Figure14:Measurestoaddressdriverrecruitmentanddeployment Increasetheavailabilityandfundingfor apprennceships Guidanceonskills,fundingandsupport Staffdevelopment Improveindustryimage Accesstostudenttypeloans Incennvestorecruitlong-termunemployed Driverroadsidefacilines 1 2 3 4 5 6 7 1=leastimportant7=mostimportant 18 The Driver Shortage: Issues and Trends 18 For‘othermeasures’thatwouldhelpaddressrecruitment,‘improvingdriverpay,hoursand conditions’wasagainthemostpopularresponse,asitwasforotherreasonswhydriver shortageswereanticipated(Figure15). Figure15:Othermeasurestoaddresstheproblemofdriverrecruitmentanddeployment Improvedriverpay, hoursandcondinons Reducedriver regulatoryburden Increaseapprennceshipsupport andreducequalificanoncost Improvepublicimage ofdrivers 0% 5% 10% 19 15% 20% 25% 30% 35% The Driver Shortage: Issues and Trends 19 www.repgraph.co.uk Tel: 01892 526171* Fax:01892 534989 www.fta.co.uk Freight Transport Association Limited Hermes House, St John’s Road, Tunbridge Wells, Kent TN4 9UZ • Registered in England Number 391957 *Calls may be recorded for training purposes 10.16/SR
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