2024 State of Warehouse Labor Report: A Beacon of Stability and Growth

The warehouse labor market is undergoing a transformation. After years of uncertainty, the 2024 State of Warehouse Labor report reveals that consistency is returning, providing a more stable environment for warehouse operators and workers alike. This report, based on a survey of warehouse business partners across the United States and Canada, offers valuable insights into the current state of the warehouse labor market.

The shift towards stability

The 2024 report highlights a positive shift in the warehouse labor market, indicating that while the market hasn't entirely returned to normal, it is steadily improving. Operators are now placing a greater emphasis on consistency rather than flexibility with both businesses and workers seeking longer-term commitments. This shift allows warehouse operators to finally look beyond immediate concerns and plan for the future.

Improved staffing conditions

One of the key findings of the report is the improved staffing conditions in warehouses. Nearly 40% of surveyed operators reported that staffing is becoming easier compared to previous years. Although roughly half of the respondents felt that staffing challenges remained consistent with last year, this is still a marked improvement from the 2023 survey.

However, nearly 40% of respondents noted that they still don't have enough workers to meet demand, indicating that while the situation is improving, it hasn't fully normalized.

Revenue impacts and hourly pay increases

The report also sheds light on the financial impact of staffing shortages. Over 40% of respondents indicated they are forgoing some revenue this year due to insufficient staff, but the expected revenue loss is considerably lower than in 2022 when 64% of respondents reported significant revenue losses.

In response to these staffing challenges, many warehouse operators have increased hourly pay. Since mid-2020, the average hourly rate for warehouse shifts on Instawork has risen by 8%, with further increases of up to 5% expected in 2024. This aligns with the broader trend of higher pay being the top incentive for attracting and retaining workers.

Data-Driven best practices

Warehouse operators are increasingly leveraging data-driven insights and AI to optimize labor forecasting and efficiency. Some of the best practices highlighted in the report include:

- Offering competitive pay rates from the beginning to attract the best workers.

- Providing clear job descriptions to ensure workers have the necessary skills.

- Posting short training videos in advance of shifts to reduce training time and enhance worker readiness.

With the labor market stabilizing, now is an opportune time for warehouses to secure long-term commitments from their staff. Instawork offers various long-term and temp-to-hire options to support these needs. This approach not only helps in managing seasonal staffing needs but also limits financial shocks through better foresight and planning.


The 2024 State of Warehouse Labor report by Instawork provides a detailed overview of the current state of the warehouse labor market and offers actionable insights for operators. By embracing stability, leveraging data-driven best practices, and securing long-term commitments, warehouse operators can optimize their staffing approaches and ensure consistent and efficient operations.

To dive deeper into these insights and learn more about the future of warehouse labor, download the full 2024 State of Warehouse Labor report.