Wales also has one of the highest economic inactive rates of any UK nation or region
The Welsh unemployment rate has risen.(Image: )
The unemployment rate in Wales has risen to 5.4% and remains above the level for the UK as a whole. According to the Office for National Statistics, the unemployment rate in Wales from September to November last year was 5.4% (103,000 people), up 0.5% on the previous quarter (June to August).
For the UK as a whole, unemployment was up 0.3% to 5.1% (1.84 million people), although unchanged on the three months to October. Unemployment in the UK and Wales remains at a five-year high.
In England, the unemployment rate was 5.3%, in Scotland 3.7% and in Northern Ireland 2.1%. The highest rate of any UK nation or region was London (7.2%), followed by the north-east of England (6.2%) and the east Midlands (6%).
The number of economically active working-age adults in Wales was 75.5%, compared to 79.2% for the UK a whole. It was only lower in the north-east of England (74%) and Northern Ireland (73.6%).
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The number of economically inactive adults in Wales, while down 8,000 on the quarter, was 24.5%, which equates to 479,000 people. For the UK, economic inactivity was 20.8%. The level was only higher than Wales in Northern Ireland (26.4%) and the north-east of England (26%).
Responding to the figures, a Welsh Government spokesman said: “Evidence from a range of sources suggest the labour market in Wales has followed similar trends to the UK since the pandemic. Latest figures from the Annual Population Survey (APS) show the unemployment rate for people aged 16 and over in Wales was 4.5%, compared to the UK rate of 4.2%.
“We have supported about 46,000 jobs this Senedd term through business support, as we build a stronger, fairer and greener economy. We also offer a range of programmes to help people into jobs. Since 2022, Communities for Work Plus has supported around 19,900 people into work, Jobs Growth Wales Plus 18,000 and ReAct Plus 6,200.
“We are quoting the Annual Population Survey because of concerns about the reliability of Labour Force Survey data. In fact, the Office for National Statistics (ONS) itself advises caution when taking these statistics as the only measure of the labour market in Wales. For greater accuracy, it is recommended that a range of sources are used, while the ONS develops a new survey.”
UK wage growth has fallen back once again while the unemployment rate has remained at the highest level for nearly five years, as official figures reveal deepening jobs woes in the retail and hospitality sectors.
The ONS said that average regular earnings growth fell to 4.5% in the three months to November, down from 4.6% in the previous three months and staying at the lowest since April 2022.
With Consumer Prices Index inflation taken into account, wages were 0.9% higher. The number of employees on payrolls fell 43,000 in December, with some of the biggest falls in the hard-hit retail and hospitality sectors. The monthly estimate was the biggest decline since November 2020 at the height of the pandemic, although the figure is subject to revision.
But the data showed a welcome rise in vacancies, up 10,000 to 734,000 – the biggest increase since the second quarter of 2022.
ONS director of economic statistics Liz McKeown said: “The number of employees on payroll has fallen again, with reductions over the last year concentrated in retail and hospitality, and reflecting ongoing weak hiring activity.”
She added: “While there was a slight increase in vacancies in the latest period, the overall number has remained broadly flat over the last six months, following a long decline. Wage growth in the private sector has slowed to its lowest rate in five years while public sector wage growth remains elevated, reflecting the continued impact of some pay rises being awarded earlier than they were last year.”
The data showed a 72,000 fall in payrolled employees year on year in the wholesale and retail sector, with a 21,000 estimated drop between November and December.
In hospitality, payrolled employees dropped 70,000 annually, with a 9,000 fall in December alone.
The sectors have been hit hard by soaring employment costs over the past year following last year’s hike in National Insurance contributions and steep minimum wage increases.
