What assessment has the Minister made of the impact of the fall of the unemployment rate to 3.21 per cent in Wales on the economy and wages?
The unemployment rate in Wales was 3.1% (October to December 2021), compared to a UK rate of 4.1%,
For Wales, the rate is down 0.7 percentage points on the quarter and down 1.4 percentage points on the year. This is the lowest unemployment rate since April to June 2020 and the largest annual decrease since July to September 2016.
As the Resolution Foundation reported prior to the pandemic, Wales had halved the employment gap with the UK over the devolution period and the proportion of low-paid employees in Wales has been falling in the 2010s.
It is, however, important to recognise that inflation is running high and projected to increase further. This will impact on real earnings and incomes - and will be impacted further by increasing energy prices and the UK Government’s planned increase in National Insurance contributions.
The economy has emerged from an unprecedented downturn due to the pandemic. However, the Russia-Ukraine conflict may also create headwinds for the economy more generally in addition to continued trade disruption following EU exit and cost of living pressures.