State of Warehouse Labor Report Highlights Workforce Trends

As global trade uncertainty looms and warehouses near major ports operate at 95% capacity, businesses are racing to stock up inventory ahead of potential tariff increases, intensifying pressure on warehousing teams. The State of Warehouse Labor report, released by Instawork, uncovers how leaders are adopting flexible, layered staffing models to meet unpredictable demand and boost retention in a challenging labor market.

"The layered staffing model is transforming how warehouses think about labor. By combining a dependable core team with a flexible bench of experienced workers, operators can build stability into their workforce while staying agile,” says Alex Vinden, general manager of light industrial of Instawork. "It's a smarter, more resilient way to scale, especially during times of uncertainty."

Key takeaways:

• 42% of operators plan to increase use of flexible workers this year.
• 48% say temp workers are as skilled, or more skilled, than full-time staff.
• 52% cite finding reliable, quality labor as their top challenge.
• Entry-level warehouse workers now earn between $19-$22 an hour in nearly half of facilities.