CIPD urges focus on fair work, skills and innovation ahead of 2026 Senedd election

Daniel Bevan - Editor

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The Chartered Institute of Personnel and Development (CIPD) has called on policymakers to prioritise fair, skilled and innovative work to strengthen Wales’ economy, as it launched its 2026 Wales Manifesto ahead of the Senedd election.

The manifesto, Fair, skilled and innovative work for Wales, draws on research and engagement with employers and people professionals across the country and sets out recommendations to address workforce challenges including the rise of AI and automation, an ageing workforce, skills shortages and high levels of overqualification.

Among its proposals, the CIPD is calling for an apprenticeship guarantee for 16 to 24-year-olds.

The organisation said its data shows 76% of UK employers would support such a move, which could help tackle youth unemployment and skills gaps.

The manifesto is published against a backdrop of high economic inactivity in Wales.

Figures from the UK Annual Population Survey show around 465,100 people aged 16 to 64 were not in work last year, giving Wales an economic inactivity rate of 24.1%, compared with a UK average of 21.3%.

The CIPD’s recommendations are grouped around three priority areas.

On fair work, it urges the Welsh Government to work with employers to remove barriers to employment, including making greater use of devolved powers across childcare, health and skills.

This includes expanding funded childcare to children under two, alongside clearer guidance and resources to help employers implement fair working practices and improve job quality.

On skills, the manifesto calls for better alignment between skills provision and labour market demand.

Proposals include reforming Personal Learning Accounts into buildable accounts targeted at priority sectors, a responsive all-ages careers service, and more flexible apprenticeships and hiring incentives as industries continue to evolve.

On innovation, the CIPD highlights the need for stronger people management capability to support the responsible adoption of generative AI and automation.

It calls for enhanced business support services and stronger partnerships between education providers and employers to drive innovation and productivity across Welsh industries.

The professional body warned that without decisive action, Wales risks falling behind on productivity, with labour shortages, skills gaps and unemployment continuing to constrain growth.

It also stressed that government action alone will not be sufficient, arguing for a partnership approach involving employers, employees, education providers and policymakers.

Marek Zemanik, Senior Public Policy Advisor for the UK nations at the CIPD, said: “Wales is at a time of profound change.

“Political developments, demographic shifts in the workforce, and emerging technological trends are transforming both the nature of work and the skills required for jobs in Wales.

“Employers are also navigating rising employment costs that are deterring some from recruiting, which could further constrain job growth.

“Against this backdrop, and with a Senedd election approaching, it is more important than ever that the next Welsh Government steps up and takes decisive action to help improve work and working lives in Wales.

“A partnership approach with organisations, combined with a clear focus on fair work, skills and innovation will be key to driving a more productive labour market and a thriving economy in Wales.”