GUEST COLUMN:
Marek Zemanik
Senior Public Policy Advisor for the UK nations
CIPD
The appointment of Plaid Cymru leader, Rhun ap Iorwerth, as the new First Minister of Wales presents an opportunity to drive lasting change in the Welsh labour market, where skills and labour shortages continue to constrain growth. But achieving this will require a sustained partnership approach with employers, alongside a clear focus on fair, skilled and innovative work.
This is crucial as emerging technological trends and demographic shifts are transforming both the nature of work and the skills required for jobs across Wales.
Research from the CIPD’s Lifelong Learning in the Reskilling Era report revealed that employment among 50–64-year-olds in Wales has increased by 32% over the last two decades – more than triple the overall employment growth rate of just 9% in Wales (from 2004-2024). Yet older workers report having weaker skills development opportunities, with limited upskilling and reskilling interventions.
This highlights the challenge in addressing skills gaps and skills supply at a time when demographic change is also reshaping how we approach work, retirement and long-term economic growth.
Fair, skilled, innovative work in Wales
To help align public policy better with changing labour market needs in Wales – and improve work and working lives – the CIPD has produced a range of recommendations for the Welsh Government in its Manifesto for Wales, focusing on three priority areas:
Fair work – The CIPD is urging the Welsh Government to work with employers to identify and remove barriers to employment, with more proactive use of devolved powers across childcare, health and skills systems. This includes expanding funded childcare to children under two years old, to support more parents in balancing work with caring responsibilities.
These measures will be key to boosting labour market participation and easing mounting pressures on businesses, including rising employment costs and new employment law reforms under the Employment Rights Act 2025.
Skills – To better align skills supply with labour market demand and strengthen Wales’ skills system, the CIPD is calling for targeted upskilling and reskilling interventions. These include reforming Personal Learning Accounts into more flexible, buildable accounts.
Additional recommendations include a more responsive all-ages careers service along with more flexible apprenticeships. An apprenticeship guarantee for 16–24-year-olds, coupled with employer incentives to hire apprentices, would go further in strengthening youth employment and addressing skills gaps. Our research shows that 76% of UK employers support this approach.
Innovation – CIPD research suggest that automation threatens 3.6% of jobs in Wales, higher than the UK average of 3%. To help organisations responsibly adopt generative AI and automation, the CIPD is calling on the Welsh Government for enhanced business support services. This support would help organisations to strengthen their people management capability in using new technologies effectively to improve jobs and boost business performance.
Stronger partnerships between education providers and businesses are also proposed by the CIPD to drive more innovative work across industries in Wales.
Partnership approach is key to a more skilled workforce
Against a backdrop of ongoing economic and geopolitical uncertainty, it’s crucial that the Welsh Government continues to engage closely with employers, ensuring that devolved powers are used in a way that supports – rather than constrains – hiring and growth in Wales.
A partnership approach with organisations, combined with a clear focus on fair work, skills and innovation will be key to driving a more productive labour market with quality jobs for people of all ages.
We look forward to continuing to support the Welsh Government and the newly appointed First Minister to help build a more engaged and skilled workforce – boosting organisational productivity and delivering a stronger, fairer and more resilient Welsh economy.
