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UK warehousing workforce 70% bigger than official figures suggest

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The UK logistics sector is calling for greater investment in supply chain resilience after official figures showed the economy contracted in April, despite growth over the wider three-month period.

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According to the Office for National Statistics, UK real GDP fell by 0.1% in April 2026, following growth of 0.3% in March and 0.4% in February. The fall was driven by a 0.2% decline in services output, partly offset by 0.1% growth in construction, while production showed no growth.

However, the wider picture was less negative. GDP grew by 0.7% in the three months to April compared with the previous three-month period. Transport and storage also performed better than the headline monthly figure, with output rising by 1.4% in April. Within that, land transport services and transport services via pipelines, excluding rail transport, grew by 2.0%, while warehousing and support activities for transportation rose by 1.9%.

Logistics UK said the April contraction underlines the need to build resilience into the economy so goods can continue moving during periods of geopolitical and economic disruption.

Ben Fletcher, Chief Executive of Logistics UK, said the Middle East conflict was “a stark reminder that it is impossible to predict the future” and that resilience was the only way to manage the impact of unforeseen events.

He said the improved business confidence seen at the start of the year had begun to support growth, but that the volatility caused by the conflict had acted as a brake on the economy. Fletcher also warned that, even if the conflict ends soon, supply chains could take months to return to normal because of vessels being out of position, contracts being on hold and higher fuel prices.

The organisation welcomed recent government measures, including the postponement of a rise in fuel duty, a 12-month road tax holiday for HGVs and a reduction in the red diesel duty rate for rail freight. However, Fletcher said the industry now needed “an urgent package of ongoing support” to help maintain confidence and strengthen resilience.

Warehousing figures point to a larger hidden logistics workforce

The call for resilience investment comes as new analysis suggests the UK warehousing sector is far larger than official employment figures indicate.

According to analysis carried out for the UK Warehousing Association by Kirsten Tisdale of logistics consultancy Aricia, around 760,000 people work in UK warehousing. That is more than 70% higher than the Office for National Statistics figure of around 440,000 workers in 2025.

The difference reflects the fact that many warehousing and storage roles sit within other sectors, including retail and manufacturing, and are therefore not fully captured in the official industry figure.

Even using the lower ONS figure, warehousing employment has risen by 40% since 2011, compared with 14% growth in overall job numbers across the economy. The UKWA said this shows the need for policymakers to recognise warehousing as a major employment sector and support clearer career pathways.

Clare Bottle, Chief Executive of the UKWA, said the figures gave the clearest picture yet of the sector’s real contribution to the UK. She added that perceptions of warehousing had not kept pace with the modern industry, arguing that the sector provides both entry-level opportunities and routes into supervisory and management roles.

Bottle said members face recruitment gaps not only for warehouse operatives but also for team leaders and supervisors. She linked part of the problem to the apprenticeship system, saying logistics companies have only been able to use about a third of the money they have paid into the Apprenticeship Levy.

The UKWA is calling for Skills England to approve a Warehouse Manager apprenticeship, which it says would support career development, productivity and wider economic growth.

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