Welsh employment rate remains lowest in Britain as poverty and joblessness rise
Opposition parties blame Labour's tax policies and call for urgent reforms
WALES continues to have the lowest employment rate in Britain, according to the latest official figures released for May 2025, sparking renewed political criticism over the Welsh Government's economic performance and approach to tackling poverty.
The data from the Office for National Statistics (ONS) shows that employment in Wales stands at 72.2%, the lowest in Britain, compared to a UK average of 75.1%. Meanwhile, economic inactivity—people neither in work nor actively seeking work—remains the highest in Britain at 24.2%, above the UK average of 21.3%.
Unemployment in Wales has risen to 4.7%, a year-on-year increase of 1.3 percentage points, and the number of paid employees has dropped by 5,300 in the past month, according to separate figures from Stats Wales.
The figures have prompted concern from opposition parties, who argue that tax and regulatory policies are pushing businesses to halt recruitment or cut jobs.
Welsh Conservative Shadow Economy Secretary Samuel Kurtz MS said: 'Under Labour, our economy is broken, both here in Wales and across the United Kingdom. You cannot tax your way to prosperity.'
He criticised what he called a 'regulatory stranglehold' on enterprise, including business rates, the so-called 'jobs tax,' and the proposed Tourism Tax, which he claims stifles growth.
'We would scrap business rates for small firms, revitalise our high streets and axe the Tourism Tax once and for all,' Kurtz added.
Welsh Liberal Democrat MP David Chadwick went further, saying: 'These figures show the huge damage Labour's misguided jobs tax is already having on the Welsh economy. With Wales more dependent on small businesses than other parts of the UK, the Chancellor must scrap it now.'
The criticism was echoed by the Welsh Conservatives' Shadow Social Justice Secretary Dr Altaf Hussain MS, who cited a recent 'Poverty in Wales' report revealing that 22% of the population—around 700,000 people—are living in poverty.
This includes 200,000 children (31%), 400,000 working-age adults (21%), and 100,000 pensioners (16%).
'After 26 years of Labour in Wales, poverty remains stubbornly high,' Dr Hussain said. 'We would cut taxes for working families and match England's childcare offer, enabling more parents to work and reducing child poverty.'
The Welsh Government has not yet responded to the latest labour market figures or the criticism from opposition parties. Ministers have previously stated they are focused on reducing regional inequality and supporting job creation through skills programmes and targeted investments.
The full employment and poverty statistics can be accessed via Stats Wales and the Office for National Statistics.
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