Training to tackle UK labour market shifts

The UK labour market continues to show signs of strain. The number of vacancies is falling, and fewer employers appear to be in “expansion mode.” While performance is not catastrophic, it reflects an economy that is sluggish and uncertain.

Structural shifts and the need for skills development

Beneath the surface, deeper structural changes are reshaping the labour market -particularly for young people and graduates.

Both temporary and permanent job numbers are down, and traditional first-job sectors like food and drink are seeing reduced recruitment.

Entry-level and “Saturday” jobs, including those in hospitality, are becoming harder to access. This makes it more difficult for young adults to transition from education to work, which is a serious social challenge. Experiences during the Credit Crunch showed how difficulty “launching” into work can create “career scarring” that affects individual earning potential years later.

There are also business implications. If recruitment of new workers slows down, this will set the stage for workforce ageing and succession issues later on.

Taking a wider view, volume performance is currently weak across the whole UK food system and price competition is fierce. This makes businesses vulnerable to increases in fixed cost, since costs cannot be passed on to consumers or offset by volume efficiency.

Rising labour costs are especially problematic, making labour productivity a key issue. If the cost of labour is rising, then each unit of labour deployed must create more value. The only way to do this is via either more and better equipment or more and better skills for individuals. Both make labour more effective.

These trends highlight the growing importance of lifelong learning and skills development. In a labour market where job roles are evolving and opportunities are shifting, training is no longer optional, it’s essential. Upskilling and reskilling are key to helping individuals remain employable and enabling businesses to stay competitive.

Training that supports every career stage

In today’s shifting labour market, IGD’s training programmes play a vital role in helping individuals and teams stay resilient and future-ready. Whether it’s bridging the skills gap created by rapid technological change, supporting young people and new starters as they build confidence, or developing strategic thinkers who can lead through uncertainty—training equips people to thrive.

IGD offers free targeted programmes that support career development at every stage.

• The New Manager Skills Course in September helps individuals prepare for their first steps into management.

• The New Starters Course in October provides essential knowledge of the food industry, enabling new recruits to hit the ground running.

These opportunities are designed to build capability, motivation, and long-term success - ensuring the food industry continues to grow stronger, even in challenging times.

A call to action

The current slowdown is a signal - not just of economic pressure, but of the need to invest in people. Employers who prioritise training today will be better equipped to lead tomorrow. IGD’s training programmes are here to help you do just that.