Closing the skills gap: New report examines UK’s shrinking labor supply and its impact on food supply chain

30 Oct 2019 --- The challenges caused by a shrinking labor supply across the UK food supply chain are being underscored by the country’s Food and Drink Sector Council (FDSC). A new report highlights the growing skills shortage in Britain since the Brexit referendum over three years ago and calls for urgent action to remedy gaps in certain sectors. It comes as net migration is forecast to fall in the coming years which will further impact the nation’s food supply.

“While the Food and Drink Federation (FDF) is unable to comment on projected labor shortages in absolute terms, net migration is predicted by the Office for National Statistics (ONS) to decline by approximately 120,000 people by 2023. This fall became noticeable after the EU referendum in 2016, but is forecasted to become more pronounced as the UK withdraws from the EU,” an FDF spokesperson tells FoodIngredientsFirst.

“As a result, labor shortages are likely to worsen post-Brexit, due in part to lower net migration. The issue around labor shortages is heightened by the fact that migrants tend to fall in the working age category,” adds the spokesperson.

Led by the FDF in collaboration with Sheffield Hallam University, Preparing for a Changing Workforce is positioned as the first report to bring together the entire sector from “farm to fork” and present a cross-chain approach to addressing future workforce, skills and productivity concerns.

Management and leadership skills are a common gap across the whole of the food and drink supply chain and act as a barrier to the adoption of new technologies, notes the report. This, when coupled with an anticipated shortfall in labor is expected to threaten future productivity growth across the supply chain.

FDF underscores that the food and drink sector has a significant impact on the UK economy, contributing £121 billion (US$156 billion) to national Gross Value Added and employing over four million people (14 percent of the national workforce), spread across every region and nation of the UK.

Labor shortages are likely to worsen post-Brexit, notes the FDF.Training for all role levels
Jobs in the food and drink sector are often perceived as low-skilled, but this report shows that businesses are seeking to fill roles across all skill levels from intermediate through to higher and advanced levels. Food and drink businesses recognize the importance of apprenticeships, but also emphasized that more support is required to improve engagement with the Apprenticeship Levy – a UK tax on employers that can be used to fund apprenticeship training. Almost one third of respondents eligible to pay the Apprenticeship Levy reported writing it off as a tax due to uncertainty over how best to use the funds.

Based on the evidence collected, the FDSC has identified early recommendations to upskill employees and attract future talent through the greater use of apprenticeships and offering T Level (technical education) work placements across the sector; improving accessibility and quality of training provision for food and drink businesses of all sizes throughout the UK; and professionalizing leadership and management skills within the sector to ensure that managers are prepared for a changing workplace.

FDF hopes that this multi-faceted approach, which combines industry-led solutions with related government interventions, will advance training and skills development and transform the industry's image as an employer.

“We must work with employers, education providers and government to identify what actions we must take together to close the food and drink sector's skills gap, and deliver productivity growth. Access to skills is a growing problem across the sector, and according to the report, the majority of companies expect the situation to become more difficult. This is because we will see a tighter labor market due to the ageing population coupled with lower net migration,” says Dame Fiona Kendrick, Food and Drink Sector Council Member and Chair of the Workforce and Skills Group.

“Now is the time to act. I appeal to you to join us in this movement, and ensure the UK food and drink businesses lead the way in providing secure and well-paid jobs at all skills levels across the UK,” she adds.

Based on research, the FDF has outlined early priorities for the FDSC among which proposed investment in skills will play an integral role in mitigating against the issue of an ageing workforce. 

“Ensuring UK food and drink has access to a highly-skilled, well-paid and home-grown pool of talent is critical to the industry retaining its reputation as a global leader and will guarantee its long-term potential,” says Kendrick.

“This is the first time the food chain has come together to deliver such a far-reaching, future-focused report with a strong set of recommendations for action. This report provides an evidence base and an approach on which to build on, but its success can only be guaranteed if the FDSC and the wider food and drink supply chain is able to fully collaborate with government,” she concludes.

By Benjamin Ferrer