Gen Z ready to close Wales’ skills gap, but employers must act
Gen Z ready to close Wales’ skills gap, but employers must act
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A new report from The Open University suggests that Wales’ future workforce is motivated and ready to support economic growth, but employers must act now to unlock that potential.
The Business Barometer: Skills for today and tomorrow, how employers can plan for future skills, surveyed more than 2,000 UK business leaders and 1,000 Gen Z adults, including 139 employers and 80 respondents under 25 in Wales.
Findings highlight that while 58% of Welsh organisations are experiencing skills shortages, the highest rate in the UK, young people are keen to meet the challenge.
According to the research:
- 73% of Gen Z are considering careers based on where skills are most needed.
- 66% would stay longer with employers offering training and development.
- 54% are actively factoring skills gaps into their career planning.
The report points to strong potential in digital, AI and sustainability, but warns that only 31% of Welsh employers currently run initiatives to engage under-25s.
Dr Scott McKenzie, Assistant Director, Learning, Skills and Innovation at The Open University in Wales, said: “The data is clear: there’s a mismatch between employer intentions and practical action. But there’s also a real opportunity here. Welsh employers can start by building structured skills plans, work with education providers, invest in flexible training, and open up opportunities to more diverse talent. The organisations who act now, who take learning seriously, at every level, will be the ones who will thrive in the years ahead.”
Baroness Martha Lane Fox CBE, Chancellor at The Open University, added: “Employers have an incredible opportunity, and responsibility, to shape the future workforce. The talent is out there. Young people are motivated, they’re digitally savvy, and they want to contribute. But they need clear training pathways, practical support, and employers willing to invest.
“While there are economic challenges at this moment for employers, the smartest organisations won’t just wait for skills to arrive, they’ll build them, inclusively and proactively, to fuel growth and resilience.”
The report also highlights risks of inaction, with 60% of Welsh employers saying skills shortages have increased workloads, 43% citing reduced productivity, and 37% scaling back growth plans. Yet only 36% currently have formal skills plans in place.
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