Labor Shortage Threatens Logistics Operations in Brazil

Aging workforce, high entry costs, and less attractive conditions are pushing professionals toward digital platforms, intensifying competition for jobs in transport and warehousing

Giovanna Gregori, founder of People Leap and HR executive

By: SiiLA News

08/18/2025

According to the Brazilian Institute of Geography and Statistics (IBGE), the country’s unemployment rate stands at 5.8%. Yet in a territory as vast as Brazil, employment opportunities are far from evenly distributed — both regionally and across sectors.

In the first quarter of 2025, data from FGV IBRE revealed that 58.1% of service companies struggled to hire qualified workers, with logistics among the most affected segments. At the same time, another survey from the institution showed that 43.8% of Brazilians believe it is difficult to find a job, highlighting the paradox between statistically low unemployment and the widespread perception of scarce opportunities.

In logistics, this mismatch translates into a critical shortage of drivers. Beyond the aging workforce and low replenishment of professionals, another factor is gaining ground in the debate: competition from ride-hailing and delivery apps, which attract workers with greater flexibility, lower barriers to entry, and competitive pay.

It is within this context that Giovanna Gregori, founder of People Leap and HR executive, stresses the need for a broader analysis and warns against simplistic explanations.

“There is solid evidence of scarcity and aging in critical roles, such as truck drivers. The idea that ‘young people simply don’t want the job’ is an oversimplification. Part of the issue comes down to entry costs, working conditions, and the relative attractiveness compared to alternatives like apps. The causal link ‘apps driving workers away from logistics’ has yet to be formally demonstrated by studies, but there are plausible signs of competition for entry-level labor,” she said.

An aging workforce

A survey by ILOS shows that the number of truck drivers fell 20% over the past decade, from 5.5 million in 2014 to 4.4 million in 2024. Only 4% are under 30, while the majority are over 50.

The trend is global as well. Data from the International Road Transport Union (IRU) indicates that across 36 countries, only 6.5% of drivers are under 25, with an average age of 44.5. Exceptions include China (17%) and Uzbekistan (25%), which attract a higher share of young drivers compared to the global average.

Read more: Cultural shifts and delivery apps deepen skilled labor shortages, putting pressure on Brazil’s construction sector

App-based competition

Although no scientific studies confirm a direct cause-and-effect relationship, experts point out that ride-hailing and delivery apps now compete directly for the same labor pool that traditional logistics struggles to replenish.

According to FGV IBRE, in 2024, 54% of delivery workers and 58% of app-based drivers relied on the apps as their only source of income. Most were not seeking other jobs: 67% of delivery workers and 63% of drivers said they were not looking for another occupation, consolidating apps as their main job rather than a side activity.

This shift can be partly explained by the model’s appeal. The study reports an average payment of R$47 per ride for drivers and R$31.33 per delivery, competitive against traditional logistics — especially when factoring in flexible hours and lower entry barriers.

For Giovanna Gregori, the issue is not just financial but structural:

“No studies have yet proven that the rise of apps directly caused a decline in new entrants into ‘traditional’ logistics. However, it is plausible that the combination of low initial investment, no need for a personal vehicle, fewer regulatory hurdles, and flexible hours make apps direct competitors for young and entry-level workers, while road logistics requires higher-level licenses, prior experience, long-distance trips, and often suffers from poor infrastructure,” she explained.

According to Gregori, unless logistics lowers entry barriers and makes the career more attractive, it will keep losing workers to the apps. She stresses that retaining talent requires competitive and transparent pay, better working conditions, and clear career progression opportunities.

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