The UK logistics and transport sector is undergoing a period of major transition, forcing recruiters to adjust to new hiring patterns, emerging skills needs and a cooling economy that remains unpredictable. While demand for drivers and warehouse operatives remains steady, the industry is increasingly shaped by automation, rising operating costs and post-Brexit labour changes.
According to Logistics UK’s Skills and Employment Report 2025, the industry supports more than 2.6 million jobs nationwide and contributes almost 8 per cent of the UK’s GDP. Yet the composition of that workforce is changing rapidly. The shortage of HGV drivers that dominated headlines in 2021 and 2022 has largely eased, but retention and reskilling have become the sector’s new priorities.
The Office for National Statistics reports that vacancies in the transport and storage sector fell slightly in the third quarter of 2025 but remain 14 per cent above pre-pandemic levels. Recruitment agencies say permanent driver placements have stabilised, but employers are now demanding workers with broader technical competence — including route-optimisation software, data analytics, and experience managing automated systems.
“Digitalisation is transforming what it means to work in logistics,” said Karen Dee, chief executive of the Freight Transport Association, in a recent industry briefing. “We’re seeing strong demand for planners, technicians and engineers who can support automated and decarbonised operations.”
This evolution is reflected in the kinds of placements recruiters are handling. Agencies that once focused primarily on volume driver hiring are now sourcing IT technicians, robotics engineers and sustainability officers for logistics firms investing in smart warehousing and electric vehicle fleets.
Fuel prices and cost inflation continue to shape employment strategy. Logistics UK data shows that operating costs for transport businesses rose by nearly 12 per cent in the past year, driven by fuel volatility and rising insurance premiums. As a result, many employers are cautious about expanding permanent headcount and are relying heavily on temporary labour to manage seasonal peaks.
“Flexibility is still king in this market,” said Paul Mummery, a senior analyst at the Road Haulage Association. “Recruiters who can supply vetted, compliant staff at short notice are vital to keeping supply chains moving.”
Recruiters also face demographic challenges. The average age of a UK HGV driver is now 51, and fewer than two per cent of drivers are under 25. Industry efforts to attract younger entrants have had limited success, though new government-funded training programmes and apprenticeships are beginning to show promise. The Department for Education’s Skills Bootcamps in HGV driving, for instance, have trained more than 10,000 new drivers since 2022, but retention beyond the first year remains a concern.
Technology and sustainability are also creating new career paths. Automation, artificial intelligence, and electric vehicle adoption are pushing employers to hire specialists who can bridge the gap between mechanical and digital operations. Analysts at the Chartered Institute of Logistics and Transport predict that by 2030, one in four logistics roles will require digital or data skills, compared with fewer than one in ten today.
Regional differences remain significant. The Midlands and North West continue to experience the strongest logistics employment growth thanks to major warehousing hubs in Birmingham, Daventry, and Warrington. In contrast, London and the South East have seen slower growth as operating costs and congestion constraints limit expansion.
Despite these challenges, confidence in the sector’s long-term prospects remains high. A 2025 survey by the Recruitment and Employment Confederation found that 64 per cent of logistics employers expect staffing levels to increase over the next three years, driven by e-commerce demand and the shift to green freight solutions.
For recruiters, the lesson is clear: logistics is no longer only about drivers and depots. It is about data, sustainability, and workforce adaptability. Agencies that can blend traditional supply expertise with strategic insight into technology and talent development will be best placed to support the sector through its next phase of transformation.