Hiring smart: Using labour market indicators for better HR

Labour challenges remain a paramount concern of food and beverage processors. With an aging population, the need to have effective recruitment and retention strategies will only intensify. However, commonly reported labour market indicators can provide insights into current and future workforce trends, helping businesses address recruitment, retention, and workforce planning challenges.

Here are four common labour market indicators and how you can use the data to respond to the challenges posed:

1. Employment growth projections

Industry organizations like Food Processing Skills Canada conduct regular surveys of the workforce needs of the Canadian food and beverage processing industry. For example, a recent report on workforce projections estimates that food and beverage manufacturers must hire over 90,000 people between 2023 and 2030. This will comprise expected industry growth and replacement demand, such as new workers replacing an aging workforce. Knowledge of these growth projections indicates the importance of strategic hiring plans to meet the demand for skilled workers.

2. Job vacancy rates

Statistics Canada surveys and reports job vacancy rates by industry sector and province monthly. The rate is calculated by dividing the number of vacant positions by the total demand for workers, so occupied and vacant positions. Reaching a high of 6% for food manufacturing coming out of Covid, Statistics Canada reports steadily falling rates (to the 4% range) in recent quarters. Other sources, such as Food Processing Skills Canada, report much higher vacancy rates - 17% in 2023 - and characterize it as a vacancy crisis.

High and rising job vacancy rates indicate a strong labour market and more challenging conditions for hiring and retaining workers. Businesses will have to compete harder to recruit and keep workers. This would typically lead to upward pressure on the wages offered to new employees and the need for retention tactics to reduce turnover. It can also lead to increased efforts to implement automation and technology solutions.

3. Unemployment rates

https://www.fcc-fac.ca/en/knowledge/hiring-smart-labour-market-indicators