GUEST COLUMN:
Gareth Matthews
Director
Itec Skills and Employment
Wales, like the wider UK, is facing a growing workforce challenge. Nearly one million young people are currently not in education, employment or training (NEET), and the number is rising, according to the UK Government’s Young People and Work: Interim Report (May 2026).
For employers, this presents a clear paradox. At a time when many businesses are reporting skills shortages and recruitment difficulties, a significant proportion of young people remain disconnected from the labour market.
The issue is not a lack of ambition. Most young people want to work, develop skills and build meaningful careers. However, pathways into employment have become more limited. Entry-level roles, apprenticeships and work experience opportunities have declined, making it increasingly difficult for young people to gain the experience employers value.
At the same time, many leave education without the practical, job-ready skills or confidence needed to transition smoothly into the workplace. The result is a disconnect between available talent and business need.
This challenge is particularly relevant in Wales. While programmes such as Jobs Growth Wales+ (JGW+) and apprenticeships are making a positive impact, gaps remain between education, training provision and employer demand. Many businesses continue to struggle to access a pipeline of work-ready candidates, while young people are often unclear about the opportunities available locally.
Wider pressures are adding to the challenge. Rising living costs, mental health concerns and the lasting impact of the pandemic are affecting young people’s readiness for work and their ability to engage with employment opportunities.
If unaddressed, the long-term implications are significant, not only for young people, but for the Welsh economy. Businesses face constrained growth, reduced productivity and an ongoing skills gap, while young people risk long-term disengagement from the labour market.
However, this is also a moment of opportunity.
The Welsh Government’s forthcoming Employability Support Programme, due in March 2027, reflects a shift towards a more connected and responsive system. Its focus on reducing economic inactivity highlights the need for stronger alignment between skills development, health support employer engagement and workforce productivity.
Evidence from across Wales shows what delivers results. The most effective employability programmes combine skills development with real-world experience, employer involvement and tailored support.
Key elements include:
- Clear and accessible pathways into local employment
- Strong partnerships between employers and training providers
- Skills development aligned to workforce needs
- Opportunities for young people to gain practical experience
- Integrated wellbeing and support services
- Personalised approaches, particularly for those with additional learning needs (ALN)
For employers, this highlights an important role. Businesses that engage early, through apprenticeships, work placements, mentoring or collaboration with training providers, are better positioned to develop talent pipelines that meet their future needs.
Too often, focus is placed on addressing unemployment once it occurs. A more effective approach is prevention: early engagement, clearer pathways and stronger collaboration between education, training and industry.
Across Wales and the UK, successful initiatives demonstrate that when employers are actively involved, outcomes improve. Young people gain the skills, confidence and experience they need, while businesses benefit from a more capable and resilient workforce.
Behind the statistics are individuals with potential, often facing barriers such as low confidence, limited access to networks or unclear career pathways. With the right support and opportunities, that potential can be realised.
After exiting college due to lack of support with her literacy, Millie found the foundation she needed on the JGW+ programme with training provider, Itec Skills and Employment. The tutoring she received enabled her to complete a level 1 qualification and the Itec team facilitated a placement with ‘Partnership of Care’.
As a result, Millie had a clear, accessible pathway, and soon transitioned into a level 2 apprenticeship.
To overcome previous barriers to education, Millie received wrap around support. She said: “I wanted to be in the health and social sector but because I cannot read and write, I did not think I should be there, but I did observations through voice recording instead of writing.”
The Itec assessor supported Millie on an individual basis. Millie said: “I get distracted and overwhelmed. They took time to understand how I worked.”
Thanks to a specialised employability skills programme, apprenticeship and an active employer, Millie gained the skills, confidence and credibility to transition into full time employment. Millie's ambition is to further her qualification to level 3.
The Young People and Work report is a clear call to action. For Wales to address its skills gap and drive sustainable economic growth, stronger collaboration between government, employers and training providers is essential.
This is a solvable challenge. The talent is there. The demand is there. What is needed now is better alignment and the creation of a system that connects young people to opportunity and supports businesses to access the skills they need.
For Welsh employers, this is more than a social responsibility. It is a strategic opportunity to shape the future workforce, strengthen communities and support long-term economic success. When young people succeed, Welsh businesses succeed and the economy grows stronger.
