2. What action is the Welsh Government taking to reduce unemployment in Wales? OQ59746

We continue to invest in employability programmes that we either run or fund from the Welsh Government. Two good examples are Communities for Work Plus, which is delivered by local authorities, and ReAct+. Together with Jobcentre Plus—a UK Government function—we have in place a wide range of measures to help support unemployed people into work.

Thank you, Minister. As you know, the latest data shows that, despite a UK-wide improving picture, Wales continues to fall behind in terms of employment and continues to see a rise in unemployment. According to the latest Open University's business barometer report, 69 per cent of small and medium-sized enterprises are currently facing skills shortages in Wales. This is a dramatic increase on last year's report, where only 32 per cent believed that finding the right skill set was the single biggest challenge facing businesses. The demand for jobs is out there, Minister; we just need the Welsh Government to invest in the workforce. With that in mind, what is the Welsh Government going to do in order to ensure the reversal of this incredibly disappointing trend?

Well, there are a couple of points to make in response. The first is on the employment and unemployment figures. As I and the First Minister have set out, actually, on the figures themselves, it's important not to over-rely on another month's worth of figures, because the Office for National Statistics figures do show a rise in unemployment, whereas, actually, the pay-as-you-earn figures over the last year show an increase in employees of 1.5 per cent in Wales. The last month's figures show a 0.3 per cent increase. Now, it's unusual to then have the ONS figures come out and say something entirely different. So, we do need to understand what's going on in that picture, and, to be fair, ONS are looking to increase the size of the Labour Force Survey they undertake to try to make sure that those figures are more reliable and don't have to wait for the annual population survey. 

When it comes to skills, this is directly related to our overall budget, which, as you will know, is reducing in value. You'll also know that, in the area of skills, we have unhelpful competition from the UK Government cutting across us. It would be much better, in the way in which we work practically with Jobcentre Plus local management and offices, if we had that sort of relationship with the UK Government. It is about both the direction and the value of shared prosperity funds. It is also about pragmatic policy making. And that, I think, would be a good deal for this place, and respecting devolution. It would also, crucially, be a good deal for businesses and for people who are looking to improve their skills to improve their prospects of work. 

Minister, I was pleased to see the announcement you made with the education Minister last week about rolling out a scheme whereby young people at risk of leaving education and becoming unemployed are provided with meaningful work experience to ensure that they can reconnect with their learning and are encouraged to develop their aspirations. What role do you believe that this initiative, working alongside, for example, the young person's guarantee, could play in reducing unemployment, and youth unemployment in particular, here in Wales?

Thank you for the question. I'm very pleased that we've been able to announce a £0.5 million investment in tailored work experience. It follows a successful pilot in the area, undertaken with year 10 learners that Careers Wales undertook. And this is about providing work experience for young people to gain an opportunity to look at their own prospects in the world of the work, and to re-engage in some of their learning as well, to make sure that the learning itself is both interesting and directed to their potential future careers, and to enhance their opportunities to go into the world of work. And this does underpin the work we are trying to do across the country in the young person's guarantee, to ensure that we don't have a lost generation. This again is further evidence of us using budgets that are under pressure, but still investing in the future, and supporting young people to make sure they can plan a successful future here in Wales.