26 January 2026
Labour Market Overview for Wales – January 2026
The Welsh Government’s Labour Market Overview: January 2026 presents the latest monthly data on employment, unemployment and economic inactivity across Wales. The report shows that employment levels remain broadly steady, supported by growth in part‑time and flexible work. However, unemployment has increased slightly compared with the previous month, with young adults continuing to experience higher rates than the wider population.
Economic inactivity remains a significant challenge, with long‑term sickness identified as the main contributing factor. The report also highlights experimental Pay As You Earn Real Time Information (PAYE RTI) data, which shows modest year‑on‑year growth in payrolled employees in Wales, although the pace of growth has slowed.
Sectoral patterns indicate continued strength in health and social care, hospitality and green‑economy‑related roles, while some administrative and retail roles show signs of contraction. The report emphasises the importance of monitoring these trends as Wales prepares for wider economic and policy changes in 2026.
The findings reinforce the need for up‑to‑date labour market intelligence to support clients navigating a shifting employment landscape.
Read the full Labour Market Overview for Wales.
Economic inactivity remains a significant challenge, with long‑term sickness identified as the main contributing factor. The report also highlights experimental Pay As You Earn Real Time Information (PAYE RTI) data, which shows modest year‑on‑year growth in payrolled employees in Wales, although the pace of growth has slowed.
Sectoral patterns indicate continued strength in health and social care, hospitality and green‑economy‑related roles, while some administrative and retail roles show signs of contraction. The report emphasises the importance of monitoring these trends as Wales prepares for wider economic and policy changes in 2026.
The findings reinforce the need for up‑to‑date labour market intelligence to support clients navigating a shifting employment landscape.
Read the full Labour Market Overview for Wales.
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