Number of companies reporting rising staffing costs soars

“Shock” government figures showed nearly 36% of transport and logistics companies have seen an increase in these costs.

This doesn’t include NI and minimum wage rises, due to kick in next month and which will leave next to no room for passing on costs.

The figure of 35.7% of transport companies is included in Office for National Statistics (ONS) data and is considerably more than the 24% of manufacturers who responded saying costs had spiralled and 20.4% of retail firms.

The increase is attributed to higher wages, bonuses, NI and pension contributions – but further rises are on their way.

The ONS report found 37.2% of transport and storage companies are bracing themselves for the impact of additional increases over the next quarter.

Just 1.7% think their costs will fall.

David Jinks, CILT member and head of consumer research at Parcelhero, said: “These figures are a sharp contrast to the previous survey, released last November, when just 12.2% of transport and storage firms reported their staffing costs had increased over the previous three months.

“That was compared to 22% of manufacturers and 16.2% of retailers that had experienced an increase.

“Of course, the elephant in the room is last year’s Autumn Budget, when Chancellor Rachel Reeves announced that on 6 April, 2025 the rate of employer NICs will increase from 13.8% to 15%.”

Last month, Toyota said it had seen an increase in the number of requests received for information about automation and robotics since the Chancellor of the Exchequer announced the planned increase in NI contributions.

The company said interest in automated warehouse tech had surged and it revealed a move to replace warehouse workers with robots to fend off spiralling costs.

SME owners also responded to a survey following Autumn’s Budget, which found an 8% increase in the number looking to lay off staff amid concerns about the impact of the increase.