We Need to Embrace New Technologies and the Opportunities They Bring

To drive the Welsh economy forward we need to encourage workers to embrace new technologies, such as AI, and have a mindset focused on opportunities rather than limitations.

Economic inactivity is still a problem

In April 2024, this website featured my article concerning the economic inactivity rate in Wales. The economic inactivity rate measures the percentage of working-age people (16- to 64-year-olds) who are ‘economically inactive’; that is, without a job, have not sought work in the last four weeks, and/or are not available to start work in the next two weeks. Data from the Office for National Statistics (ONS) used in that article showed that the economic inactivity rate in Wales was 26.9%. That is, one in every four person of working age was economically inactive. For the UK, this rate was 21.8%. By December 2024, these rates had decreased to 24.5% for Wales and 21.5% for the UK.

“Get Britain Working”

High rates of economic inactivity often cause social and economic issues. For example, economic growth is constrained by a large inactive workforce unless boosted by either increased immigration or productivity improvements. The benefit of engaging in quality work also include improved health, well-being, financial security, and enhanced quality of life through social interaction. A sustainable and inclusive economy should strive to ensure everyone who wants a job can find and keep one.

Given the UK and Wales' economic inactivity issues and the workforce participation benefits, the UK Government launched a targeted intervention pilot programme in April 2025. £10 million will be made available to help fund individual mentoring, counselling, wellness programs, and health condition management in Denbighshire, Blaenau Gwent, and Neath Port Talbot – the areas with highest inactivity rates in Wales. This programme, a product of the UK Government’s “Get Britain Working” policy paper, will invest a total of £125 million across the UK in strategies to combat unemployment, inactivity, and improve job opportunities. The difficulty isn't advocating for reform; it's enacting reforms that genuinely better people's lives.

Ill-health and discouraged workers

A significant contributor to the rise in economic inactivity recently is ill health. Individuals with health issues encounter significant obstacles to employment, and suitable jobs are not always readily available for those with health-limiting conditions. In addition to investing in the NHS, the government can work with the businesses to find better ways to support the workforce. For example, support is needed to ensure people remain healthy in the first place and for rapid intervention when ill health starts to affect employment. Return-to-work initiatives must prioritise tailored health support, and the removal of barriers-to-work is critical. The government must also create targeted support programs for high-risk unemployment groups, such as the low-skilled, addressing local health disparities and other employment obstacles.

Discouraged workers are also included in the economic inactivity rate; that is, those who have given up their job search not from a lack of desire to work, but from a belief that there are no jobs available. People get discouraged for many reasons, including not being equipped to deal with technology change in the workplace. People may avoid joining the workforce due to the economic climate or the ongoing negative news about the economy. The IMF cautioned in April that President Trump's erratic policies would severely harm global economic growth.

We need to change the narrative

Given recent events, it's natural to feel discouraged about the economy. The global economic impact of Trump's “Liberation Day” tariffs was highlighted by trillions of pounds in losses across financial markets. Although the majority of “Liberation Day” measures may be on a pause at the moment, the uncertainty they created will haunt financial markets and economies for some time to come.

We are powerless to alter Donald Trump’s tariffs and policies; but we can still influence many things in Wales.

First, our political leaders should reconsider how they view world events. Despite the emphasis on geopolitics, we're in the midst of a technological revolution. Technological progress across different industries has the potential to revolutionise the country.

History doesn't repeat itself, but it does rhyme

At Bangor University, my students recognise that economic growth is driven by humankind's ability to solve problems using new technology. Sometimes, economic growth is driven by “physical” innovations, for example the steam engine, that increased individual productivity and capability. At other times, the new technologies were “social”, such as writing and the development of laws. Through these technologies, our collaboration and coordination across multiple activities improved significantly, increasing our overall efficiency and success.

Wales needs a mindset focused on opportunities presented by today's numerous positive technological advancements, both physical and social, rather than dwelling on limitations.

Consider the daily impact of Artificial Intelligence (AI). Instead of fearing AI, let's view it as a tool to expand human knowledge, make it more accessible, and automate mundane tasks, freeing up people to do more creative work. While machines now perform many tasks previously done by humans, history shows that humans adapt by becoming more productive. If you are unconvinced, recall the technological advancements of the 1930s. The introduction of new machinery to factories and farms led to higher production with a smaller workforce. But how many jobs exist today that didn’t exist in 1930s? The rise in new jobs from innovation stems from its impact on worker productivity, expanding capabilities and enabling new work.

Although today's technology, including AI, is unlike that of the 1930s, anxieties about job displacement are not a recent phenomenon. While today’s technologies (including AI) certainly look very different from those of the 1930s, it is worthwhile remembering that worries over the future of jobs are not new. AI and advanced automation have been frequently used by companies in recent years to slash jobs and cut costs. Yet, our way forward involves a choice: we can use technology to simply replace workers, or we can use it to improve people’s skills, boosting the economy and creating new jobs.

We need to embrace the opportunities that new technologies bring and use them to improve all aspects of our lives. We need to embrace the future.