2024 State of Warehouse Labor Report: Industry Shows Signs of Stabilization and Growth

Instawork's annual report reveals improved staffing conditions in the warehouse labor market, highlighting increased hourly pay and data-driven best practices. The survey covered warehouse business partners across the U.S. and Canada, showing a more positive outlook compared to 2023.

Nearly 40% of warehouse operators reported easier staffing, though almost half still face revenue losses due to shortages. This is an improvement from 2022, where 64% of respondents experienced significant revenue losses.

Average hourly pay for warehouse shifts on Instawork has risen by 8% since mid-2020, with anticipated further increases of up to 5% in 2024. Competitive pay rates and flexible schedules are the top incentives for attracting and retaining workers.

Warehouse operators are increasingly using data-driven insights and AI to enhance labor forecasting and efficiency. Key practices include offering competitive pay, clear job descriptions, and pre-shift training videos to ensure worker readiness.

Instawork advises that the current stability in the labor market presents an excellent opportunity for warehouses to secure long-term staffing commitments, leveraging various hiring options to meet these needs.