Blog Post |

6 Predictions About the Supply Chain Labor Market in 2022

Kristina Finn

December 22, 2021

For the supply chain industry, 2021 was probably one of the most challenging years. From the strains of the pandemic to a narrowing labor market to the backlog at ports, companies have faced some daunting obstacles throughout the year. 

As we head into a new year, we wanted to share some of our insights into what the supply chain labor market will look like in 2022. Here are the six main things we expect to see:

1. The labor market will remain severely strained… 

…especially in the transportation/truck driving industry. Not one initiative or trend ignited a positive uptick in 2021 – and as demand continues to surge, companies will remain in crisis mode until at least mid-year, even amidst the White House initiative to strengthen the trucking workforce.

2. Government regulations will focus on supply chain 

The end-of-year G2 Summit made it clear that the Biden administration has their eye on the supply chain. Regulations and initiatives will emerge in 1H in the effort to minimize ongoing disruption.

3. Companies will invest in retention solutions 

After the holiday peak season, companies will emerge from the fire and focus on investing in solutions that prevent the same situation from unfolding again. But their attention won’t only be on hiring. Rather, retention technology will be their #1 priority. 

4. Cost of goods will continue to spike 

The workforce shortage is here to stay for the foreseeable future – and many big brands are trying to combat the issue with higher wages. Couple bigger checks with higher costs around transportation, and consumers can expect major inflation.

5. Warehouses will become a cost center 

With big brands offering pay incentives and bonuses to hire, warehouses across the country will raise wages by 10-15%. As a result, the CFO and C-suite will have their eye on frontline workers like never before, recognizing the warehouse as a major cost center.

6. Retail giants will have record-high turnover

Amazon’s turnover is going to increase even more – and as they continue to spike wages, it will have an impact on the Walmarts and Targets of the world. Candidates will grow accustomed to $25 an hour during the holiday season, and will raise their expectations going forward. As a result, quarterly earnings will be majorly impacted by workforce problems in the coming year.

What’s the best way to get ahead of improving workforce retention in 2022? Finding a solution that allows businesses to gather anonymous feedback in real-time from your frontline workers, use that information to make immediate improvements, and track the impact those changes have on your employee turnover. 


Kristina Finn

Kristina Finn, Content Marketing Manager |

Kristina Finn is the Content Marketing Manager at WorkStep and has eight years experience in advertising and marketing. Kristina creates engaging pieces to propel the WorkStep brand and to communicate their mission to help make the supply chain a better place to work. With a background in journalism, Kristina enjoys finding compelling stories to tell and sharing them with an audience that will find value in the content. Kristina resides in Rochester, NY with her husband and enjoys listening to music, dancing, and spending time with family and friends.