Labour demand drops in 2024: FCC report

A new report from Farm Credit Canada (FCC) found the demand for labour in F&B manufacturing dropped for the first time in 2024 since 2020. However, structural issues continue to strain the supply of labour over the long term.

In 2024, job vacancies fell 31.8 per cent, resulting in a low job vacancy rate of 2.6 per cent. The most common job vacancies were for labourers, process control operators, and industrial butchers, but these vacancies have now reached or fallen below 2019 levels. Despite less competition for workers, wages for food manufacturing trended upwards in 2024.

According to FCC, beverage manufacturing also experienced a 21.1 per cent drop in job vacancies between 2023 and 2024. However, the number of payroll employees rebounded after two years of declines, boosting labour demand in 2024 by 6.8 per cent. Nevertheless, offered wages in beverage manufacturing declined this year.

Although competition for workers is softening, this isn’t necessarily a positive sign for the future. “The lower demand for labour in food and beverage manufacturing comes as the sector ends the year with flat sales and wages that are playing catch up to inflation,” said the report.

The food and beverage manufacturing industry still faces labour supply issues. Food Processing Skills Canada estimates the industry will need to hire and retain 142,000 new workers between 2023 and 2030, or make investments in automation to offset this expected labour demand.

FCC is forecasting stronger sales growth in 2025 as well as rising wages. It recommends companies work to balance immediate labour needs with long-term strategies for growth and innovation.