Logistics (the movement of goods to the consumer) is not one of London’s largest employment sectors. However, the sector does employ many low-qualified male workers – a category of young people who often struggle to find work in the central London area.
The recent GLA Economics report (London’s logistics sector, August 2009) found that there are around 221,000 full-time equivalent employees in London’s logistic sector – slightly less than construction, but more than manufacturing or public admin. In the last decade it has grown at a similar rate to London’s economy as a whole, but employee numbers have not grown as fast as some sectors.
Non-managerial jobs in a typical logistics company:
• LGV (Light Goods Vehicle) driver
• LGC instructor
• LGV technician
• Fork-lift truck driver
• Courier
• Transport clerk
• Customer service assistant
• Removals porter
• Packers
Geographically the sector is concentrated around the London airports but each of the central London boroughs does have some significant concentration of logistics employment, with the exception of Islington.
The logistics labour force in London is relatively less qualified than London as a whole. It has more of workers in manager, operative and elementary occupations and less in professional occupations than London’s labour force. Skills shortages in the sector are primarily literacy, customer handling and oral and written communication. Logistics is low paid when compared to other sectors, although this is partly due to a lower-skilled workforce and low skilled workers can earn more in logistics than in other sectors.
There is a concentration of male employees in the sector, only 24 per cent of workers being female, compared to 43 per cent for all industries – only construction and other transport industries employ a higher proportion of males.
Looking to the future, increased use of river and rail-based freight could increase the significance of this sector to central London.