Food workforce crisis deepens as labour shortages threaten supply and service

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Employing 4.1 million people, around one in eight workers, the sector is one of the largest in the country. But businesses across agriculture, manufacturing, logistics, retail and hospitality are struggling to fill essential roles, raising concerns about how long disruption can be contained behind the scenes.

The strain comes at a time when unemployment and economic inactivity remain high, exposing a growing disconnect between available jobs and the people needed to fill them.

A new analysis from the Institute of Grocery Distribution (IGD), a research and training organisation focused on the food and consumer goods sector, warns that long-term workforce shortages are becoming embedded and may not resolve even with wider economic recovery.

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Skills shortages and inactivity expose structural gaps

The report points to nearly one million young people who are not in education, employment or training, despite ongoing demand for workers across the food system.

At the same time, unemployment has increased by more than 650,000 since 2022 and more than nine million people are classed as economically inactive, indicating deeper structural challenges in the labour market.

These pressures are compounded by an ageing workforce, rising long-term illness and changes in migration policy, all of which are reducing the available labour pool.

Employers are also reporting persistent gaps in both technical and soft skills, alongside longer vacancy fill times and increasing pressure on existing staff.

Warning signs already emerging across the sector

While consumers have largely been shielded from disruption so far, the report warns that this may not continue if workforce challenges intensify.

Operational strain is already visible in some areas, including difficulties recruiting for key roles such as HGV drivers, engineers and frontline staff. Rising burnout and succession challenges are also affecting workforce stability.

The scale of the sector means the impact extends beyond individual organisations. Workforce shortages could influence pricing, service quality and the ability to maintain consistent supply, particularly during periods of increased demand or external disruption.

Industry calls for coordinated action on skills and recruitment

IGD is relaunching its Feeding Britain’s Future programme to address the growing challenge, with a focus on strengthening the talent pipeline and improving access to careers in the sector.

The initiative includes plans to expand early-career learning, increase awareness of food industry roles and build stronger links with schools and universities.

Naomi Kissman, social impact director at IGD, said the issue had been building over time and now required a coordinated response. “This quiet crisis has been building for years, but the pressure is intensifying and will reach a crisis point without a meaningful shift in approach.

“Our analysis shows this is a structural challenge, bigger than any one business, and it requires industry and government working together to secure the future of the UK food system.”

Kissman pointed to the opportunity to engage younger workers. “At the same time, the UK is facing a growing crisis of youth opportunity. We have a responsibility, as the nation’s largest private sector employer, to give young people the future they deserve, as part of a confident, skilled, future-ready workforce.”

Long-term workforce strategy needed to avoid disruption

The report calls for closer alignment between industry and government, including reforms to skills funding, improved careers guidance and clearer pathways into employment.

It also points to the need for better coordination between education providers, local skills planning and employer demand, as well as greater certainty around immigration routes for critical roles.

Without action, the gap between labour supply and demand is expected to widen, making it harder for the sector to meet future needs.

With one third of the workforce now aged over 50 and fewer younger workers entering the industry, the challenge is likely to intensify in the coming years.

The findings suggest that securing a stable, skilled workforce will be essential not only for business performance, but also for maintaining the UK’s wider food system and long-term economic resilience.

William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.

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