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Welsh employment rate remains the lowest in Britain

Team @ AberdareOnline04 mins

The latest labour market statistics for Wales, covering May 2025, revealed that Wales’ employment rate remains the lowest in Britain, at 72.2%.

Economic inactivity remains the highest in Britain, at 24.2%.

Welsh Conservatives lay blame at the UK and Welsh Labour Governments at both ends of the M4, who have made life difficult for employers and employees across Wales.

Commenting, Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, Samuel Kurtz MS said:

“Under Labour, our economy is broken, both here in Wales and across the United Kingdom. They are demonstrating that you cannot tax your way to prosperity.

“The UK and Welsh Labour governments, operating from both ends of the M4, have worked hand in glove to make life harder for employers and employees alike. From increasing regulatory burdens to the jobs tax and the family farm tax, their policies have stifled growth and enterprise.

“Welsh Conservatives believe in a Wales that is open for business. We would remove the regulatory stranglehold on our economy by overhauling the current business rates system, abolishing rates for small businesses to revitalise our town centres, and axing the damaging Tourism Tax once and for all.”

Reform wants to bring blast furnaces back to Wales, says Farage

The National Insurance (NI) hike is causing many UK companies to scale back recruitment, as almost half of employers have reported its impact, with 27% delaying or canceling hiring and 16% making redundancies. The increase, from 13.8% to 15% for employers, coupled with a lower threshold for paying NICs, is making it more expensive for businesses to hire staff. 

Here’s a breakdown of the impact: 

  • Increased Costs:The rise in NI contributions is increasing employers’ costs, making hiring more expensive.
  • Recruitment Delays and Cancellations:Almost half of employers (46%) report that the NI increase has affected their recruitment decisions, with 27% delaying or stopping hiring.
  • Redundancies:Some companies are also making redundancies in response to the increased costs.
  • Salary Reviews Postponed:A significant number of employers (19%) are postponing or cancelling salary reviews.
  • Impact on Profitability:Companies estimate that their annual profits will decline by 29% as a result of the NI increase.
  • Businesses Scaling Back:A significant number of firms are scaling back their recruitment plans due to the NI hike.
  • Limited Budgets:Some companies are not hiring or delaying hiring due to limited budgets resulting from the NI increase.

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