Unemployment in Wales has risen slightly but remains below the rate for the UK as a whole, according to the latest figures from the Office for National Statistics (ONS).
Unemployment Trends
In the three months from February to April 2026, unemployment in Wales increased by 0.3 percentage points to 3.8%. In contrast, the UK unemployment rate fell by 0.3 percentage points to 4.9% compared to the previous quarter. For the three months to March, UK unemployment was down from 5%.
Among UK nations and regions, only the South East of England (also 3.8%) and Northern Ireland (1.7%) had lower unemployment rates than Wales. However, Northern Ireland has the highest economic inactivity rate in the UK. London continues to have the highest unemployment rate at 6.6%.
The number of unemployed people in Wales rose by 5,000 on the quarter to 59,000, but fell by 14,000 on the year. For the UK, unemployment decreased by 105,000 to 1.6 million, but increased by 124,000 on the year.
Employment and Economic Inactivity
Wales has the third lowest employment rate for working-age adults in the UK at 72.3%, behind the North East of England (71.1%) and Northern Ireland (71.9%). The UK average stands at 75%.
The proportion of working-age people in Wales classed as economically inactive – not actively seeking employment – is 24.8%, higher than the UK average of 21% and only lower than Northern Ireland’s 26.8%. The number of economically inactive people in Wales, including those on long-term sick leave, stands at 484,000, down 11,000 on the quarter.
Among young people aged 16 to 24, 17% are classed as NEET (not in education, employment or training), which is higher than the UK average.
Government Response
The new Plaid Cymru administration, like the previous Labour Welsh Government, advises caution in interpreting the ONS figures from the Labour Force Survey (LFS). The ONS, headquartered in Newport, is working to improve the survey’s robustness. Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, is seeking a meeting with the ONS to discuss data reliability.
A Welsh Government spokesperson said: “As a newly elected government, we are committed to driving investment, innovation and higher productivity across Wales. We have announced a National Productivity Goal to close the gap with the rest of the UK and unlock the full potential of the Welsh economy. By focusing on productivity, we will deliver more jobs, higher pay, stronger businesses and thriving communities. This goal will give direction to our new Welsh innovation and development agency, shaping how we support businesses, develop skills and invest in the foundations of a stronger, more competitive Welsh economy.”
The spokesperson added: “Evidence from a range of sources suggests the labour market in Wales is following a similar trend to the UK as a whole. Amid continued interventions from the ONS to increase the quality of the LFS data, we recommend using the LFS data alongside other labour market measures to gain a clearer picture. Latest figures from the Annual Population Survey (APS) show the unemployment rate for people aged 16 and over in Wales was 4.5% compared to the UK rate of 4.4%, and Wales’ employment rate is relatively close to the all-time high.”
UK Picture
Liz McKeown, ONS director of economic statistics, said: “The labour market remained broadly stable in the latest quarter, with further softening evident in some measures. Payroll numbers continued to fall over this period, with new recruits at their lowest level in five years.” She noted “some signs of workers moving into self‑employment”, while declining vacancies indicated that firms are “becoming more cautious about taking on new staff.”
The ONS vacancies survey showed that some firms are putting recruitment on hold due to economic uncertainty and higher labour costs.
