Skip to main content

THE STATE OF EMPLOYMENT IN WALES, FEBRUARY 2019



The latest regional labour force survey which came out this week, provides some interesting data on the Welsh economy and on the surface, it would seem that there is only encouraging news this month in terms of employment, unemployment and economic inactivity. 

First of all, if we examine employment (which consists of employees, self-employed people, unpaid family workers and people on government-supported training and employment programmes), there are now 1.531 million people in employment in Wales, the highest number since records began. 

This equates to 203,000 more people in employment than at the height of the 2009 economic recession.




And we are performing better than any other part of the UK. Over the year Oct-Dec 2018-2019, the region with the largest increase in the employment rate was Wales at 3.7 per cent, followed by Northern Ireland (1.7 per cent). 

As a  result, Wales now has the fourth best employment rate in the UK and has experienced the second largest decrease in unemployment over the year (1.0 percentage point). Indeed, there are now only 64,000 unemployed people in Wales (or a rate of 4.1 per cent) as compared to a high of 145,000 in 2011 (a rate of 9.7 per cent).





In overall terms, 117,000 men have gained employment as opposed to 86,000 women since the recession, with the growth in male employment being higher (16.9 per cent vs 13,4 per cent).

Examining the yearly labour force data (which goes to Sept 208) also throws up some important findings. In September 2018, 71.8 per cent of the workers (1,029 million people) were full time as compared to 73 per cent in September 2009. Full-timers made up 57.5 per cent of the increase in employment between Sept 2009-2018, which is considerably less than for the UK as a whole for the same period (76 per cent). 

Whilst the proportion of men in full time employment has decreased from 86.3 per cent in 2009 to 85.0 per cent in 2018, the proportion of women in full time employment has stayed the same (56.9 per cent). 


This does not suggest Wales is a part-time economy but having lower numbers of full time workers will no doubt affect economic growth relative to the rest of the UK regardless of the impressive increase in overall employment.

Given the trend towards greater freelancing in the economy, it is not surprising that the proportion of those who are self-employed has increased from 13.2 per cent in Sept 2009 to 14.4 per cent in Sept 2018, with women showing a larger proportional increase in participation than men. This is slightly lower than self-employment for the UK (14.8 per cent). There are various reasons for this, as this blog has pointed out in several articles, but given the increasing importance of this part of the economy, there must clear policies to support its further development and especially those who are working for themselves.




Not surprisingly, the number of hours worked in the economy has gone up from 41.6 million in 2009 to 45.11 million in 2018. With the UK having 1.04 billion hours per week, Wales is working 3.9 million less hours per week than we should by share of UK employment. This is an interesting fact given that Wales has the worst productivity record of any part of the UK and certainly needs greater analysis to determine why this is the case and, more importantly, in which sectors those hours are being worked.

The average number of hours worked (31.4 hours) has stayed the same for all workers and for full-time workers (36.6 hours) although there has been an small increase for part time workers from 15.8 hours in 2009 to 16.5 hours in 2018. Workers in Wales (all employees, full-time, part time) work fewer hours than for the UK as a whole).

The profile for the usual hours of work  between October 2017 and 2018 shows that over 70 per cent of people work more than 31 hours every week with 17.9 per cent working over 45 hours (predominantly men) and and only a very small proportion (1.6 per cent) work less than six hours.





In terms of economic inactivity, the region with the largest decrease in the economic inactivity rate estimate was Wales at 3.2 per cent, followed by Northern Ireland at 1.6 percentage points. In addition, the proportion of those who want a job has fallen by 9,000 over the year (a drop of 8.2 per cent).



Therefore, as we approach leaving the European Union, this seems on the surface as if the Welsh economy is more resilient than many would first think, especially in terms of employment. 

However, it remains a key concern that those be employed should have the right skills for the challenges of the future, especially if the productivity of the nation - which remains the worse in the UK - is to improve significantly over the next few years.



Popular posts from this blog

THE IMPORTANCE OF FRANCHISING

When we talk about start-ups and entrepreneurship, rarely do we discuss the potential of franchising not only as a way of establishing new ventures in the economy but also as a method of growing existing businesses. According to the British Franchising Association, franchising is the granting of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to own and operate their own business under the brand, systems and proven business model of the franchisor. The franchisee also receives initial training and ongoing support, comprising all the elements necessary to establish a previously untrained person in the business. This enables individuals to start their own businesses without having to develop their own ideas and utilising an existing brand and established market. Of course, whilst each franchise business is owned and operated by the franchisee, the franchisor controls the quality and standards of the way in which the business is...

THE CRACHACH

Unlike me, do you consider yourself part of 'the establishment' here in Wales?  As thousands gather for the Eisteddfod in Mold this morning, they will, according to some social commentators, not be participating in the greatest cultural festivals of Europe. Instead, they will merely be bit-part players in one of the annual gatherings of the great and good of Wales.  Unkindly, this set of the movers and shakers in Welsh society is known as 'the crachach' , and constitute a social class all of their own, dominating the educational, cultural and media sectors of Wales and allegedly looking down upon any outsider with new ideas, reinforcing mediocrity and failing to see beyond the limits of their own narrow experience.  They are said to live in a comfort zone that awaits the expected invitation to the next glass of chilled chardonnay and canapés, forgetting that due to their lack of leadership and drive, Wales remains firmly rooted to the bottom of the UK prosperity league ...

THE IMPORTANCE OF THE CREATIVE CLASSES

One of my favourite academic books of the last two decades must be the “Rise of the Creative Classes” by Professor Richard Florida.  This was one of the first detailed studies of the growing group of individuals who use their creativity and mental labour to earn a living and not only included those in arts and entertainment, but also people working in science and technology as well as knowledge-based professions such as healthcare, law, business, and finance.  Fast forward to 2022 and Professor Florida has written an updated report on the creative classes although he and his team now identify a different type of individual who is taking full advantage of the growth in digital platforms, social media, and online marketplaces.  Such ‘creators’ are defined as those who use digital technology to make and publish unique creative content, whether in the form of video, film, art, music, design, text, games, or any other media that audiences can access and respond to.  They ...