Every day, I see the potential that exists across our communities. I see young people with ambition, creativity and resilience. I see adults who want to retrain, to contribute, to build better lives for themselves and their families. And I see employers who are keen to grow and find the skills that they need to succeed.
Bringing these strengths together more effectively is one of the defining challenges, and opportunities, for Wales’ skills system.
At present, education, skills and the economy do not always move forward in step. While there is a shared commitment to improving productivity, we don’t yet have a shared, long-term plan that clearly sets out what Wales wants to be good at, which sectors we will prioritise, and how we will build the workforce to support that ambition. Too often, education, industry and policy operate in parallel rather than in partnership.
This lack of alignment creates pressure throughout the system. Employers ask whether we have the skills they need, and colleges respond with flexibility and innovation. But without clarity, consistency and long-term investment, provision can be reactive. We find ourselves responding to immediate demand rather than shaping future capability.
Further education, apprenticeships and vocational pathways are central to Wales’ future productivity. At CAVC, we see this every day in the impact of our learners and graduates. However, the system as a whole is challenged by short-term funding cycles and fluctuating budgets. Colleges are increasingly educating more learners than existing funding fully supports, while apprenticeship funding can vary from year to year. Planning for long-term economic impact is difficult without long-term certainty.
A productive economy is built on sustained investment and clear intent.
The positive news is that the evidence is already there. Investment in skills delivers a clear and measurable return. It raises earnings, increases business output and strengthens communities. Apprenticeships, in particular, offer some of the highest returns we see anywhere in the system. And yet access remains complicated, especially for SMEs, who make up the vast majority of Welsh businesses and often do not know how to engage.
Meanwhile, demand from individuals is not in question. When we advertise apprenticeship opportunities, the response is overwhelming. Thousands apply for a handful of roles. Young people want these pathways. They want to work, to learn, to contribute. The issue is not a lack of aspiration but a lack of alignment and capacity.
We also need to be honest about the social dimension of this challenge. Productivity is not just about output per worker. It is about life chances. In communities where people have grown up without stable employment, where confidence and self-belief are low, and where opportunities feel distant, the system has to work harder. If we fail to intervene early, we are not just missing economic potential. We are entrenching inequality.
Education must start earlier and go further. It is not enough to focus on qualifications alone. We need to build confidence, resilience and aspiration from a young age. We need to show young people the range of opportunities available to them and give them the pathways to access those opportunities. And we need to ensure that what we teach reflects what employers actually need.
Too often, we still treat education as a linear academic journey when the reality of the modern economy is far more diverse. Vocational routes are not a fallback option. They are a critical part of a productive economy. If we fail to value them properly, we fail to unlock the full potential of our workforce.
The solution is not complicated, but it does require courage. We need a more joined-up national plan that aligns skills, education and industry. We need funding frameworks that allow institutions to plan and invest strategically. And we need a system that is agile enough to respond to changing economic demands while remaining anchored in a clear strategic direction.
Wales has the ingredients to improve productivity. We have strong institutions, committed educators and a workforce that wants to succeed.
When alignment improves, productivity will no longer be seen as a challenge. Instead, we will see at as a genuine opportunity for Wales to thrive.
