This industry is facing a massive labour shortage in Canada

142,000 new workers needed by 2030, finds report

This industry is facing a massive labour shortage in Canada

Canada's food and beverage manufacturing industry is facing a massive labour shortage in the coming years, according to a recent report.

The industry will be employing 325,000 by 2030, up from the roughly 300,000 it employed in 2022, finds Food Processing Skills Canada. That marks an increase of 9%, it notes.

Considering the number of workers that would be leaving the workforce, however, that means 25,000 job openings will balloon in numbers, according to the report.

From 2023 to 2030, there will be a total demand of 66,800 new workers to replace the industry’s aging workforce. These demands are accelerated toward the end of the decade as the share of workers nearing retirement age increases, noted Food Processing Skills Canada.

Accounting for industry growth and the aging workforce, the industry will need to hire 92,500 workers over the 2023 to 2030 period. This is equivalent to roughly 31% of the 2022 workforce.

Lastly, the industry currently has a labour shortage of 50,000 workers. And following 2023, employment growth is anticipated to rise at an average annual rate of approximately 1% to 2030.

"In total, the Canadian food and beverage manufacturing industry will need 142,000 new people or almost 50% of the current workforce between 2023 and 2030," said Jennefer Griffith, executive director, Food Processing Skills Canada.

In comparison, Canada could also potentially need 30,000 truck drivers, according to a recent estimate from PricewaterhouseCoopers (PwC).

Improving food manufacturing recruitment

Now, Purcell, VP of operations at Champlain Seafood, and board director for Food Processing Skills Canada, is calling on industry stakeholders to focus on growing its workforce. 

"Canada's food and beverage manufacturing industry is a global leader in safe food production. It is time for us to also be a global leader in workforce development. We have the research capabilities, the resources, and the leadership to implement solutions and be the very best.”

People challenges and talent gaps emerged as the biggest problems for HR professionals across the world, but employers' capabilities when it comes to addressing these issues appear to be lagging, according to a previous report.

Here’s how to improve food manufacturing recruitment amid the labour shortage, according to AIB International: 

  1. Increase pay and benefits.
  2. Improve scheduling, including flexible work schedules.
  3. Upgrade facilities, as employees want to spend time in bright, well-maintained, modernized spaces.
  4. Invest in automation for “repetitive and mundane work”.
  5. Enhance training and skill development.

“Food manufacturing recruitment remains a major challenge, on par with supply chain disruption and inflation. Companies that improve working conditions and prioritize employee growth will have an easier time not only attracting new talent, but keeping (and improving) what they have,” said AIB.

Also important is a “well-rounded development for frontline employees” which “involves training and certifying them on food safety and sanitation practices, crisis management, and other skills they need to thrive in food and beverage manufacturing,” it said.