After years of uncertainty, the market for warehouse labor is showing signs of improvement and stabilization, as employers across the U. S. and Canada say their outlook on staffing is more positive than in 2023, although they still retain a sense of urgency, according to a survey from Instawork.
Nearly 40% of surveyed warehouse operators reported that staffing is becoming easier compared to previous years, according to the survey from California-based Instawork, which provides a network connecting local businesses with hourly workers. The company surveyed a sample of its warehouse business partners for its annual “State of Warehouse Labor” report.
However, those businesses also said conditions are not back to normal. Almost half of respondents indicated they are still forgoing revenue due to staffing shortages, although Instawork pointed out that the expected revenue loss is much lower than in 2022, when 64% of respondents said they had to forgo revenue that amounted to more than 25% of their total business.
The continued shortage of workers is also driving up wages. The average hourly pay for warehouse shifts on Instawork rose by 8% since mid-2020, with expectations for further increases of up to 5% in 2024. In fact, employers’ top strategy to attract and retain more workers is higher pay, following by offering flexible schedules, the survey showed.
According to Instawork, the best practices to reach full staffing include offering competitive pay rates, clear job descriptions, and pre-shift training videos to ensure worker readiness. In addition, warehouse operators are increasingly using data-driven insights and AI to improve labor forecasting and efficiency.
