TL;DR: The meat and poultry industry faces a deepening labour shortage exacerbated by rising production costs. Despite an increase in processing plants, workforce growth remains stagnant, with BLS predicting little change in employment rates. To address these issues, the industry is reforming visa programs, enhancing worker amenities, and improving training and recruitment strategies, aiming to better attract and retain employees and maintain productivity.
Growing Labour Shortage Amid Rising Costs
The meat and poultry processing sectors are grappling with a persistent labour shortage, exacerbated by rising production costs. The Bureau of Labor Statistics (BLS) forecasts no imminent resolution to this trend, highlighting the severity of the issue.
Expansion vs. Employment Stagnation
Despite an increase in the number of plants, with 905 operational under federal inspection in 2022 up from 858 the previous year, the workforce remains under strain. The meat industry employs over 500,000 people directly and supports an additional 2 million jobs along the value chain. Remarkably, in 2021, meat and poultry plants accounted for nearly 31% of all U.S. food and beverage manufacturing workers.
Record Outputs with a Static Workforce
2021 saw record production levels across various meats including beef, pork, veal, lamb, mutton, and poultry. Nevertheless, the BLS anticipates minimal growth in meat processing jobs, projecting a stagnation or slight decrease (-1%) from 2022 to 2023. The median annual wage for workers such as slaughterers and meat packers was recorded at $35,240 in May 2022.
Strategies to Mitigate Labour Shortages
The industry is addressing recruitment and retention challenges through multiple avenues:
- Reforming the H-2A visa program to facilitate easier access to foreign labour.
- Enhancing worker amenities, such as establishing child care centres and health clinics.
- Increasing incentives like sign-on bonuses and improving benefits.
- Strengthening job training opportunities to enhance skill levels and productivity.
Innovations in Training
WorkForge, specialising in manufacturing training, is revolutionising how frontline workers are prepared for the industry. Their online training modules, available in various languages and accommodating auditory learning, are designed to rapidly advance employee skills. These efforts have culminated in a 63% improvement in time-to-productivity for new hires using the program.
Enhanced Employee Experiences
Major processors such as Cargill and Butterball are investing in programs that not only attract but retain talent. These initiatives range from flexible working conditions and leadership development to support for housing and childcare, alongside the automation of routine tasks to alleviate worker fatigue and increase efficiency. Listening to employees and responding to their needs is central to their strategy, proving vital for retention.
Unique Recruitment Approaches
Firms are also turning to innovative recruitment strategies. Utilising local media for employee testimonials and robust referral programs are among the methods that have been successful in drawing talent.
The meat processing industry’s labour shortage is a multifaceted problem requiring a comprehensive approach. By addressing the needs of employees, enhancing training and development, and employing innovative recruitment methods, the sector aims to overcome these challenges and sustain growth.
