27 February 2026
Welsh Labour Market Overview for February 2026
The Welsh Government’s latest Labour Market Overview shows stable employment levels but a slight rise in unemployment and continued high economic inactivity, driven largely by long‑term sickness.
The findings underline a labour market that is steady but under pressure. Employment levels remain broadly stable, yet unemployment has risen slightly, particularly among young adults and those attempting to re‑enter work after periods of inactivity. Economic inactivity continues to be a major challenge, with long‑term sickness accounting for a significant proportion of those not in work.
PAYE RTI data shows modest year‑on‑year growth in payrolled employees, but the pace of growth has slowed, reflecting wider UK trends of softening labour demand and slowing wage growth.
The data also highlights growing disparities between groups. Young people, those with lower qualifications and individuals with health conditions are experiencing greater difficulty securing stable employment. These patterns underline the importance of early intervention, targeted support and clear progression pathways, particularly in sectors where opportunities remain available but competition is increasing.
The report provides essential context for understanding the pressures facing jobseekers and the shifting landscape of opportunities across Wales.
Read more on the labour market overview for Wales.
The findings underline a labour market that is steady but under pressure. Employment levels remain broadly stable, yet unemployment has risen slightly, particularly among young adults and those attempting to re‑enter work after periods of inactivity. Economic inactivity continues to be a major challenge, with long‑term sickness accounting for a significant proportion of those not in work.
PAYE RTI data shows modest year‑on‑year growth in payrolled employees, but the pace of growth has slowed, reflecting wider UK trends of softening labour demand and slowing wage growth.
The data also highlights growing disparities between groups. Young people, those with lower qualifications and individuals with health conditions are experiencing greater difficulty securing stable employment. These patterns underline the importance of early intervention, targeted support and clear progression pathways, particularly in sectors where opportunities remain available but competition is increasing.
The report provides essential context for understanding the pressures facing jobseekers and the shifting landscape of opportunities across Wales.
Read more on the labour market overview for Wales.
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