Labour shortages in Canada’s agriculture sector are holding back growth

Canada’s agri-food sector is one of the country’s economic engines, generating over $150 billion in GDP and supporting more than 2.3 million jobs across farming, food processing, retail, and food services. While labour shortages are a growing concern across the system, the most acute pressures are being felt at its foundation: the primary agriculture sector, which includes crop and livestock production.

Though smaller in scale, primary agriculture remains vital to Canada’s economic prosperity. In 2023, it contributed $31.6 billion to Canada’s GDP—approximately 1.4% of the national total—and employed just over 231,700 domestic workers alongside 78,079 foreign workers, according to Statistics Canada. Despite its essential role, the sector is struggling to attract and retain labour.

In 2022—the most recent year for which detailed data are available—an estimated 28,200 agricultural jobs went unfilled during peak season, leading to approximately $3.5 billion in lost sales, according to a labour market forecast by the Canadian Agricultural Human Resource Council (CAHRC). The peak vacancy rate in primary agriculture that year reached 7.4%, well above the national average of 5.9%.

Two in five employers were unable to fill all the positions they needed, with one-third reporting they did not receive even a single job application from a Canadian worker. Nearly another third reported receiving only one or two.

While other parts of the agri-food system also face labour market pressures—particularly in foodservices, where vacancy rates have been similarly high—no segment is experiencing the same combination of chronic vacancies, missed production targets, and heavy reliance on foreign labour as primary agriculture.

The CAHRC forecast estimates that the domestic labour gap in the agricultural sector will increase by 15% between 2023 and 2030, from 87,700 to 101,100 during peak season. Over that same eight-year period, more than 85,000 Canadian agricultural workers, or about 30% of Canadian workers in the sector, are expected to retire, adding to the problem.

Dire consequences

If left unaddressed, this foundational shortage could compromise the resilience of the entire sector. Labour shortages result in harvesting and production delays, lost sales, increased stress on owners and staff, and curbed plans for farm operations to expand and grow. In fact, some farms may have to scale back operations or could shutter entirely.

• Cultivating growth: the economic imperative of scaling farms in uncertain times

Trying to maintain operations amid a shortage of workers could lead to higher costs for producers, which would inevitably be passed down the supply chain to wholesalers, retailers and consumers.

Labour shortages extend beyond farmers’ fields to the broader agri-business sector. A lack of workers in places like processing plants and distribution centres leads to bottlenecks that slow down the entire supply chain. Perishable goods can spoil, leading to lost sales for producers and empty shelves for consumers.

But it’s not just the domestic market that suffers. Canada exports roughly $90 billion in agri-food products annually, according to Agriculture and Agri-Food Canada. Labour shortages threaten the country’s ability to reliably meet global demand. When Canadian producers cannot fulfill orders, global buyers may shift to more consistent suppliers in other countries, which risks damage to Canada’s long-term trade relationships and export revenues. 

Reliance on foreign workers

Canada’s agricultural sector has increasingly relied on foreign workers to address labour shortages, driven by various factors such as the growing demand for labour as farms expand and the challenges of attracting workers to remote rural areas. By 2022, foreign workers constituted 17% of the agricultural workforce, playing a vital role in both crop and livestock production, according to the CAHRC.

Statistics Canada reports that the number of foreign workers in primary agriculture rose significantly from 53,842 in 2017 to 78,079 in 2024. While the majority were employed in crop production, much of the growth during this period occurred in the poultry, egg, beef, dairy, and swine sectors.

How to fix the problem

Solving Canada’s agricultural labour shortage will require coordinated action across multiple fronts. The most immediate priority is reforming access to international labour. Producers across the country depend on programs like the Temporary Foreign Worker Program and the Seasonal Agricultural Worker Program to meet essential labour needs—particularly during peak growing and harvest periods. These programs must be modernized to provide greater predictability, including streamlined processing, and viable paths to permanent residency for those who wish to stay and build careers in the sector.

In parallel, greater investment in automation and precision agriculture will help reduce labour intensity in key areas of production. From robotic milking systems to AI-powered crop monitoring tools, technological innovation can help alleviate pressure on the workforce while improving productivity. This is vital in regions where local labour is consistently scarce or where production schedules leave little margin for delay. While technology will not replace every role, it can significantly reduce the need for repetitive and physically demanding labour.

Another key pillar is building a stronger domestic workforce. That means investing in skills training, promoting careers in agriculture, and removing barriers to entry for underrepresented groups—including youth, newcomers, and Indigenous communities. Micro-credentials, apprenticeship programs, and work-integrated learning opportunities can all be deployed to support recruitment and retention. More than ever, the sector needs a proactive approach to workforce development that reflects its critical importance to national food security.

• A growing revolution in Ontario’s greenhouse alley

Finally, prioritizing measures that enhance the overall appeal of the sector can help ensure it remains competitive in attracting and retaining a skilled workforce. By investing in strategies that align with the needs and expectations of workers, the industry can build a resilient foundation for future growth.

There is no single path through which to solve the labour shortage in the agriculture sector. But no doubt industry, government and individual enterprises all have a role to play to ensure Canadian agriculture remains strong now and can grow for the future.