Wales’ Economic Inactivity Rate No Longer the Highest in the UK
Wales, previously known for having the highest economic inactivity rate in the UK, has seen a shift in its latest quarterly figures. The Office for National Statistics (ONS) reported that while unemployment has increased in Wales, it is still just below the overall UK rate. Despite this, Wales does have one of the lowest employment figures within the UK.
Key Points:
- From May to July this year, the economic activity rate among working-age adults in Wales dropped by 1.2% to 27.2%, equivalent to 520,000 individuals.
- On a yearly basis, this rate has seen a 2.8% increase, totaling 56,000 more people.
- Northern Ireland has now taken the lead with the highest percentage of economically inactive working-age adults at 27.5%.
- On a national scale, the economic inactivity figure for the UK decreased by 136,000 to 21.9% (9.28 million people).
- England’s economic inactivity rate for the quarter stood at 21.4%, whereas Scotland’s was slightly higher at 22.3%.
The economic inactivity rate encompasses individuals aged 16 to 64 who are not actively seeking employment within the last four weeks or are unable to begin work in the next two weeks, including students and the long-term sick.
Moreover, recent ONS data indicates that Wales no longer holds the lowest employment level. With an employment rate of 72.8% (1.46 million people), Wales surpasses Northern Ireland’s level of 72.5%. On a national level, the UK’s employment rate is at 78.1%, involving 34.6 million workers.
Regarding unemployment, Wales recorded a 4% rate, up by 0.5% with an additional 8,000 individuals unemployed. Despite this increase, the Welsh unemployment rate is slightly lower than the UK average, which stands at 4.1%.
The North East of England struggles with the highest unemployment rate in the UK, reaching 5.6%. Responding to the rise in unemployment within Wales, Welsh Conservative Shadow Economy Minister, Samuel Kurtz MS, expressed concerns about the overall economic situation. Kurtz remarked on the need for greater focus on creating Welsh jobs and fostering economic growth through upskilling and educational opportunities.
With ongoing shifts in economic indicators, Wales faces both challenges and opportunities in its journey towards a more robust and resilient economy.