The Canadian food and beverage manufacturing industry stands at a critical juncture, grappling with a multitude of challenges that threaten its growth and sustainability. Food Processing Skills Canada (FPSC) has been at the forefront of analyzing labour market information, offering invaluable insights crucial for designing programs and resources to support the industry. As we explore into the recent analysis conducted by FPSC, a pressing concern emerges — the impending shortage of skilled workers.
Canada’s demographic shifts, marked by an aging population and declining birth rates, have led to a natural decrease in population growth. In the food and beverage processing industry, a single unfilled position can cost businesses up to $190 per day in lost net revenue. With over 8,200 businesses across Canada, potential losses from job vacancies could soar to a staggering $9.3 million in net revenue per day or $3.4 billion annually.
As of 2022, the food and beverage manufacturing sector employs approximately 300,000 people, with projections indicating an increase to 325,000 by 2030—a nine percent growth. However, between 2023 and 2030, an alarming 66,870 employees are expected to retire, necessitating the addition of 25,702 new employees due to projected industry growth. Factoring in the current 50,000 unfilled vacancies, the industry faces a demand for 142,000 new workers over the next seven years, equivalent to 30 percent of the current workforce.
The analysis reveals varied challenges across subsectors. Beverage manufacturing, in particular, faces the highest demand for new personnel—38.5 percent of its current workforce or 19,000 individuals by 2030. The meat and poultry processing sector shows more stability, with hiring projections accounting for 25 percent of the current workforce. The seafood processing sector, however, presents a unique challenge, having the oldest workforce and a 28 percent retirement rate by 2030.
The Role of Immigration:
In tackling this impending labour crisis, the spotlight turns to new Canadians. Canada’s plan to welcome 1.2 million newcomers between 2021 and 2023 provides a unique opportunity. Immigrants already represent 31 percent of the industry’s workforce, and proactive measures by 44 percent of manufacturers demonstrate a concerted effort to recruit newcomers. Leveraging programs such as the Temporary Foreign Worker Program and dedicated initiatives for recruiting and training immigrants, including refugees, becomes imperative.
The Future of the Industry:
Labour productivity is projected to rise by 2.7 percent across all sectors, except for beverage manufacturing, where challenges in the breweries subsector hinder growth. As we collectively address the forecasted demand for 142,000 people by 2030, the integration of new Canadians emerges as a promising solution. By tapping into the immigration opportunity, the industry can not only meet its workforce demands but also contribute to the successful integration of newcomers into the Canadian workforce.
In this crucial juncture, strategic collaborations and forward-thinking initiatives will shape the future of Canada’s food and beverage manufacturing industry. As we navigate these challenges, the industry is presented with an opportunity to embrace diversity, foster innovation, and secure its position as a vital contributor to Canada’s economic landscape.
For businesses seeking guidance in navigating the complexities of global recruitment, immigration, and settlement services, Directpath Canada stands ready as a trusted partner. With expertise in facilitating workforce solutions, including specialized programs for the food and beverage industry, Directpath Canada is committed to supporting businesses in overcoming challenges and achieving sustainable growth. Explore the possibilities with Directpath Canada and embark on a journey toward a resilient and thriving future.
Jon Eric de Belen, RCIC
