29 March 2026
Wales labour market overview – signs of cooling
The March release of the Labour Market Overview reports a small increase in unemployment in Wales, with variation across age groups. Economic inactivity remains elevated, with long‑term sickness continuing to account for the largest share and reaching record levels. The number of people moving from inactivity into work has slowed, reflecting wider UK‑wide patterns.
PAYE data shows year‑on‑year growth in payrolled employees, but the pace of growth has weakened compared with previous periods. Vacancy levels also continue to soften in line with UK trends, suggesting a labour market that is gradually losing momentum.
The findings underline the importance of targeted support for individuals facing barriers to labour‑market entry and progression. As opportunities become more competitive, high‑quality CEIAG, early intervention and strong employer engagement remain essential to help people navigate a more challenging labour market.
Read more about March’s Labour market overview for Wales.
PAYE data shows year‑on‑year growth in payrolled employees, but the pace of growth has weakened compared with previous periods. Vacancy levels also continue to soften in line with UK trends, suggesting a labour market that is gradually losing momentum.
The findings underline the importance of targeted support for individuals facing barriers to labour‑market entry and progression. As opportunities become more competitive, high‑quality CEIAG, early intervention and strong employer engagement remain essential to help people navigate a more challenging labour market.
Read more about March’s Labour market overview for Wales.
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