How waste management fleets can navigate a volatile labor market

Like many fleet-driven industries, the waste management industry is grappling with labor uncertainty.

Last year, the Federal Reserve opted to cut interest rates due to cooling inflation, and it had signaled the intent for additional cuts in 2025. However, the current administration’s ongoing trade negotiations have led the Fed to be cautious about cuts, wanting to wait and see how the negotiations—specifically the tariffs—affect the economy and job market.

According to a July report from the Associated Press, June hiring reached 147,000, up from 144,000 in May (and outpacing the forecast), while unemployment fell to 4.1 percent (below forecast). On the flip side, average hourly wages didn’t hit the expected month-over-month target, though year-over-year gains are on track. Private sector hiring was about half what was expected and was outpaced slightly by the public sector. 

While these numbers present a bit of a mixed bag, they are generally trending positive.

There is, however, the skilled labor shortage to consider as well, as this could affect operator and technician availability. And, as more jobs are filled, the pool of candidates narrows. Fleets can gain an edge in cost control, job appeal and employee retention by embracing technologies that improve their operations and make it easier for employees to do their job with less friction.

Why labor volatility is hitting fleets harder

Waste management fleets are facing wage inflation, high turnover and persistent recruitment challenges. According to the Solid Waste Association of North America, waste collection jobs remain difficult to fill, and worker shortages often lead to service delays, regulatory and safety risks and overburdened drivers.

Volatility in interest rates doesn’t just impact consumer behavior—it affects municipal budgets, private contractor negotiations and capital planning. As economic conditions shift rapidly, many fleets are being asked to do more with less.

Retaining talent starts with reducing friction

An uncertain labor market can come with a hidden liability: employee disengagement. Operational blind spots like manual paperwork or spreadsheets, communication breakdowns or unexpected downtime all chip away at team morale.

Many waste and refuse fleets are turning to technologies that can streamline daily operations, whether it’s in material recovery facilities, on waste collection assets or using a digital fleet maintenance or management solution.

“Communication and operational visibility are some of the most common friction points fleets come to us with,” says Daniel Simpson, manager of product marketing at Fleetio. “When everyone can access information, like asset statuses and assignments, upcoming scheduled maintenance and DTC faults, the operation becomes more collaborative and cohesive. Communicating within specific tasks, like work orders or daily inspections, also improves accountability, which can further help reduce those friction points.”

Digital fleet solutions offer a measure of automation that can reduce time spent on daily tasks and improve workflows while simplifying inspections and centralizing communication. This means technicians can spend less time diagnosing issues and tracking down work orders or parts.

Operators benefit from clear routes and mobile inspection checklists that submit failed inspection items in real time, reducing downtime and ensuring operators can focus more time on the job and less time worrying about whether their ride is going to break down. Supervisors and key stakeholders can gain visibility into what’s working—and what’s not.

Using data to uncover budget wins

When labor markets tighten, wages and incentives can rise, but finding room in the budget without cutting corners elsewhere can be challenging. Total cost of ownership (TCO) and asset utilization data help uncover waste that can be reinvested in your people for improved retention and competitive hiring.

Other metrics and strategies to consider for improved budgetary flexibility include:

• benchmarking cost per mile (CPM) to spot outlier assets draining resources;
• monitoring downtime trends and sourcing the cause to reduce unplanned outages;
• tracking parts usage to avoid stockouts or over-ordering; and
• sharing maintenance ROI with finance leaders to justify technician bonuses.

Fleet data becomes your leverage point here, helping you prove you're a good steward of the budget while advocating for people-first policies.

Bridging the gap between operations and leadership

Retention efforts often stall when stakeholders aren’t aligned. Digital fleet solutions give managers the ability to tell a compelling, data-backed story to leadership. When you can quantify how asset downtime affects service reliability or how driver engagement improves safety, you shift the conversation from “asking for more” to “here’s the impact.”

Using solid data can help you prove the need for additional resources. You can use targeted reports to:

• advocate for upskilling or retention bonuses;
• show how automation reduces administrative overhead; and
• make the case for expanding headcount as you grow service coverage.

Build a monthly report that combines TCO trends with staffing metrics like service duration and task backlog. You’ll start spotting where your fleet is working harder than it should—and where strategic investments pay off.

Key technologies for talent retention

There are a hefty number of digital fleet solutions available, and choosing the right one for your operation may not be quite as straightforward as you’d like. The first step to ensuring you find something that meets your fleet’s needs is to define your goals. Make a list of the top three to five issues you want the solution to address.

Let’s look at some of the key features waste fleets are looking for in a solution to future-proof against labor challenges:

Maintenance workflow automation

• Assigns tasks digitally with automatic notifications
• Tracks technician productivity and backlog by asset
• Reduces time spent chasing updates or status reports

Inspection and compliance tools

• Empowers drivers to perform inspections in minutes
• Surfaces safety issues immediately
• Maintains DOT compliance

Mobile-friendly fleet communication

• Enables employees to communicate within the same platform
• Eliminates delays from missed messages or email-only chains
• Encourages more frequent issue reporting and feedback

Custom analytics and reports

• Creates TCO dashboards to monitor operational efficiency
• Visualizes maintenance trends and failure patterns
• Shares data in leadership-friendly formats

Adapting your fleet for the future

Labor volatility isn’t going away, but that doesn’t mean you have to operate in reaction mode. You can build resilience in your operation by investing in technologies that support both efficiency and people.

Waste management fleets that prioritize communication, clarity and cost control will be the ones with better retention rates and which attract better candidates.

Rachael Plant is a senior content marketing specialist for Fleetio, a Birmingham, Alabama-based fleet optimization platform that helps organizations run, repair and optimize their fleet operations.