Skills gap replaces labour shortage as logistics sector’s biggest workforce challenge

Labour shortages across the logistics sector have eased, but employers are now facing a growing shortage of technical, managerial and specialist skills that threatens future productivity and growth, according to Logistics UK’s 2026 Employment and Skills Report.

Published at Multimodal on 30th June, the report says the sector’s workforce challenge has shifted from attracting people into logistics to ensuring employees have the skills needed to support an industry being reshaped by technology. It argues that the current skills system is not keeping pace with changing business needs, with too much emphasis placed on traditional training routes rather than upskilling existing staff or supporting workers moving into logistics from other sectors.

The report also highlights the ageing profile of parts of the workforce, with 61.6% of HGV drivers aged 45 or over, alongside 47.7% of warehouse managers. Logistics UK says this underlines the need to invest in reskilling existing employees while continuing to attract new entrants into the industry.

Phil Roe, president of Logistics UK, said: “Our 2026 Employment and Skills Report shows that while entry routes into the sector are available across the educational spectrum, progression into higher-skilled roles could be enhanced by a more flexible approach to the provision of skills.

“The skills system plays a critical role in supporting workforce development, but it is not currently aligned with the pace of change in the sector, as training remains concentrated on traditional pathways and often does not take into account upskilling existing workers or entry from other sectors.”

Roe added that greater collaboration between industry and policymakers would be needed to strengthen future workforce capability. He said: “Entrants to our sector need to be able to develop the skills, qualifications and experience to sustain future requirements of our sector, and this cannot be done in isolation. Employers and policymakers need to work together to ensure that entry and progression pathways are accessible and deliverable for all.

“Logistics underpins everything in the economy, supporting industries such as construction, manufacturing and retail, which means that skills requirements need to be recognised not as a sole sectoral issue, but a critical component of national economic infrastructure.”