A recent report indicates that the UK food and drink industry has incurred an approximate loss of £1.4 billion in the past year due to labor shortages, resulting in reduced output.
According to the State of Industry report by the Food and Drink Federation (FDF), the cost over the past year, specifically during the last quarter from July 2022, has reached £192 million.
The Food and Drink Federation (FDF) reports that the UK’s largest manufacturing sector is the food and drink industry, and it has consistently maintained higher vacancy rates compared to the broader manufacturing sector.
Approximately 57% of food and drink manufacturers exhibit vacancy rates of around 5%. Among these, mid-sized enterprises with a turnover ranging from £26 million to £500 million are disproportionately affected by the shortages. Roughly half of these businesses report vacancy rates reaching up to 10%, nearly three times higher than the national average. Vacancy rates indicate the proportion of unfilled positions within an organization during a specified time frame.
Vacant positions persistently impact a diverse array of roles within the sector, including project engineers, scientists, laboratory technologists, and plant engineering technicians. This is largely because potential recruits frequently disregard opportunities within the food manufacturing industry.
The Independent Review on Labour Shortages, published by the Department for Environment, Food & Rural Affairs (DEFRA) in June, will receive a response from the UK government in the upcoming autumn. This review examined the obstacles encountered by food and farming enterprises in their efforts to secure and maintain an adequate workforce. In anticipation of this response, food establishments are urging the government to endorse the ten recommendations presented in the review. These recommendations include actions like “Reforming the Apprenticeship Levy” and “Enhancing Access to Migrant Labour.”
FDF director for growth, Balwinder Dhoot, said, “Significant labour shortages have cost businesses £1.4 billion over the last year, with companies being forced to leave vacancies unfilled and reduce production – all of which contributes to rising wage bills, higher prices and stifles growth, which is vital for a strong economy”.
“Investment is essential if we are to build a sustainable and resilient food supply chain which supports the economy and feeds the nation. Our members are unable to expand their operations, principally because they haven’t got the staff. We need government to work with the industry to implement all ten recommendations in the Independent Review into Labour Shortages and to deliver the Prime Minister’s commitment to grow the economy,” he added.
