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Photo: Tina Stafrén / imagebank.sweden.se

Labour supply and demand

Across the agri-food sector, labour demand is highly segmented and dynamic, encompassing various worker categories such as family farmers, managers and employees, seasonal and temporary workers (including migrant workers) and contractors. Today, food systems face the dual challenge of declining employment and labour shortages. Employment in food systems continues to follow a long-term downward trend, mirroring its declining share of GDP. The agricultural workforce is predicted to decline by 2% per year until 2030,
OECD 2023b.
with the most pronounced decline expected among low-skilled workers. At the same time, the proportion of seasonal and temporary workers in the agricultural workforce is expected to increase. Demand for workers with higher levels of entrepreneurial and management skills, digital skills and business and marketing experience is also expected to rise.
OECD 2023a.
 
Several EU countries are experiencing labour shortages in agriculture, butchery, bakery and other occupations within the food systems sector.
Statista 2022.
Qupaq 2023.
Labour shortages in the EU agricultural sector vary considerably according to farm size and type of production, with larger farms often being more dependent on migrant workers.
Marie-Laure 2021.
“Harvesting Hope” 2024.
The increase in migrant labour is also associated with a rise in temporary and seasonal employment in the sector, which often entails less security for agricultural workers.
OECD 2023a.
Additionally, a smaller group of specialised professionals with unique skills may serve as the last remaining experts in certain trades (e.g. butchery), filling critical gaps in labour shortages for small-scale farms.
Workshop in Cēsis 2024.
 
Job vacancies for the agri-food sector are illustrated in Figure 4. These refer to positions that are unfilled, actively advertised and have a scheduled starting date within a defined period (usually 30 days). The vacancy data are typically collected through employer surveys on the number of open and actively recruited positions. The job vacancy rate is calculated by dividing the number of vacancies by the total number of jobs (vacant + occupied). This metric helps assess labour market demand and potential skills mismatches.
Relatively linear trends in job vacancies in food systems in Sweden, Norway and Finland can be observed up to 2019. After that point, significantly greater fluctuations are observed, which may be related to the impact of the Covid-19 pandemic on food systems in 2020 and Russia's full-scale invasion of Ukraine in 2022.
Figure 4: Job vacancy rates in the food system sector (%) in Sweden, Norway and Finland from 2015 to 2024. Source: Nordregio calculations based on NSIs.
Food systems exhibit the highest rate of skills mismatch of any economic sector in the OECD, with these challenges expected to intensify in the future. In addition, food systems have been significantly affected by the climate crisis and green transition policies. Many jobs in the agri-food sector are particularly vulnerable to such changes, partly due to generally lower wages than in other sectors.
OECD 2023a.
In our survey, 80% of the students rated a high income as “important” or “very important” in their career choices. However, only 35% of respondents believed they would “earn a lot of money” as farmers (see Figure 5). 
Figure 5. Share of students who agreed with the statement “in this profession, you can earn a lot of money”. Source: own survey among students in the Nordic countries (n=534).