Half (50%) of businesses in Wales have recruited early careers talent in the past year, with the vast majority planning to continue investing in young talent, according to new research from Lloyds.
Of the companies in Wales that hired early careers talent in the past 12 months, 90% expect to recruit more over the next year. Almost three quarters (73%) said that their recruitment of early careers talent had already increased compared with the past 12 months.
Even among those that didn’t recruit early careers talent in the last year, 58% say they would do so if they felt able.
Which factors would increase employer confidence to invest in early careers talent?
When asked what factors would most increase their confidence to invest specifically in early careers talent, employers in Wales highlighted access to training and support.
Almost a quarter (24%) cited simpler apprenticeship or training schemes, while the same proportion pointed to more relevant local training provision.
More than one in five (22%) identified access to free work-readiness or employability skills programmes for new hires, while the same proportion wanted better information on available support. Meanwhile, 18% identified better access to suitable candidates.
Businesses confident on funding skills investment
This confidence extends to the wider skills investment picture where more than four in five Welsh businesses (83%) are confident they can secure the capital required to invest in training, apprenticeships or new hires over the next one to three years.
On the types of skills businesses need, customer service and relationship management (35%) was the most cited by Welsh businesses, followed by AI and automation skills (33%) and financial management (29%).
This suggests that the future workforce challenge is about developing a mix of people-facing, commercial and emerging technology skills.
Internal upskilling drives workforce development strategy
When it comes to addressing anticipated skills gaps, Welsh businesses are taking a practical approach, with internal training and upskilling of existing staff the most common response at 52%. Three in ten (30%) also plan to recruit more early careers talent.
This research comes after Lloyds announced an investment of £100m in future skills in August as it expanded its support for young people.
Nathan Morgan, Area Director for Wales at Lloyds, said:
“Businesses in Wales are clearly keen to invest in young people, and it’s encouraging to see that so many of those who are already recruiting early careers talent are planning to continue over the next year.
“What stands out is the importance of making that investment as straightforward as possible. Employers are looking for simpler training routes, relevant local provision and clearer information on the support available to them.
“With businesses also looking ahead to a changing mix of skills, from customer service and financial management through to AI and automation, continuing to invest in both new and existing talent will be important to supporting growth across Wales.”
The national picture
More than half (52%) of UK businesses have recruited early careers talent in the past year, with the North East leading on recruiting early careers talent at 70% followed by Scotland (66%) and the North West (60%).
Of the companies that hired early careers talent in the past 12 months, 89% expect to recruit more over the next year. That figure rises among South East and London businesses to 97% and 96% respectively.
Even among those that didn’t recruit early careers talent in the last year, 56% say they would do so if they felt able. That figure increases to 75% in Scotland and 71% in London.
Four in five businesses (80%) are confident they can secure the capital required to invest in training, apprenticeships or new hires over the next one to three years. The UK figure compares to the top three nations and regions: 89% in Scotland, 87% in Yorkshire & Humber and 85% in the West Midlands.
On the types of skills that businesses need, customer service and relationship management (33%) was the most cited by businesses, followed by AI and automation (26%) and digital and data (23%).
Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said:
“Businesses are not simply hiring for today, they are investing in the people who will shape their future. The strength of employers’ appetite for early careers talent is encouraging, but ambition needs to be matched by better access to candidates, clearer routes into training and the confidence to keep investing.
“Technology will continue to transform how businesses operate, and the findings are a powerful reminder that customer facing skills still matter. The ability to understand customers, build trust and manage relationships will help set the best businesses apart.
“Closing the gap between ambition and action will be a joint effort between businesses, government, communities and education providers. By helping businesses find the right people and develop the skills they need, we can build a stronger pipeline of talent and support growth across the UK.”
