Gen Z could hold the key to solving Wales’ skills crisis, says Open University report
Gen Z could hold the key to solving Wales’ skills crisis, says Open University report
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Welsh businesses are being urged to take action to address a growing skills shortage by tapping into the potential of Gen Z workers, according to a new report by The Open University.
The Business Barometer 2025: Skills for Today and Tomorrow reveals that 58% of organisations in Wales are facing skills shortages, the highest proportion in the UK. However, the report also identifies a clear opportunity: a motivated and digitally confident Gen Z workforce, ready to fill these gaps if given the right training and support.
The study, based on responses from 139 Welsh employers and 80 Gen Z adults under the age of 25, shows that young people in Wales are already aligning their career ambitions with the demands of the economy:
- 73% of Gen Z respondents are considering careers in areas where skills are in short supply.
- 66% say they would stay longer with employers who offer training and development.
- 58% are either working with or keen to work with artificial intelligence (AI).
Despite this enthusiasm, only 31% of Welsh businesses currently have strategies in place to recruit, retain or train under-25s, highlighting a major missed opportunity.
“There’s a real opportunity here. Welsh employers can take the lead by building structured skills plans, working with education providers, and investing in flexible training,” said Dr Scott McKenzie, Assistant Director, Learning, Skills and Innovation at The Open University in Wales.
“The organisations that prioritise learning at every level will be the ones that thrive.”
Baroness Martha Lane Fox CBE, Chancellor at The Open University, added: “Young people are ready to contribute. They’re motivated, digitally capable and eager to grow, they just need clear pathways and committed support from employers.”
The report also found that 80% of Welsh employers consider Equality, Diversity and Inclusion (ED&I) a business priority, signalling broad support for a more inclusive workforce. However, The Open University says more can be done to ensure underrepresented groups are supported and included in the evolving skills agenda.
While challenges such as economic pressures, rising employment costs and AI adoption continue to affect businesses, the report concludes that just 36% of Welsh employers have a formal skills plan, underlining the need for a more proactive approach.
The call to action is clear: Wales’ employers must invest in training and development to harness the potential of Gen Z and build a future-ready workforce.
