The latest figures from the Office for National Statistics (ONS) found that there were 19,000 more jobs in the UK food and drink industry in Q4 2021 compared to a year ago.

This follows data published in February that revealed vacancies across the wider UK economy had reached a new record of 1.3 million.

Like many parts of the economy, food manufacturers are still experiencing significant labour shortages, from warehouse workers and engineers to HGV drivers, butchers and vets.

According to the Food and Drink Federation (FDF), the prospects for the labour market are likely to deteriorate in the medium term. FDF said that the disruptions to energy and commodity supply brought about by the war in Ukraine will push up inflation for longer. Furthermore, the current extraordinary market uncertainty will also “put the brakes on growth.”

Wider economic outlook

The number of payrolled employees also reached a new record high in January. However, the national inactivity rate rose as well, driven by older workers taking early retirement and some reporting long-term illnesses.

In addition, pay growth is not keeping up pace with the inflation rate, with negative growth in real regular pay of 1% in January.

The FDF said that the UK economy now faces stagnation. A combination of lower growth and high inflation means that businesses are likely to slow down investment and hiring until they get more clarity about the economic outlook.