Welsh Government press conference on jobs support and strikes, 21 June 2022: transcript

Key points

• Unemployment in Wales was 3.5% in the three months to April, below the UK rate, but 23.3% of working-age adults were economically inactive, mostly due to long-term sickness.
• REACT Plus offers up to £1,500 for training, £4,500 for childcare and £300 for travel, with £13 million a year invested.
• A new young person startup grant of up to £2,000 is backed by £5 million to help 1,200 under-25s start businesses.
• Employment services will be extended to 2025 with £8 million, and more than £40 million will extend Business Wales to 2025.
• The minister said he opposes the strike but supports workers' right to act, and blamed the UK government for promoting conflict.
• He called for a quick decision on Newport Wafer Fab and said councils must meet their duty to assess unpaid carers' needs.

Chapters

1. 2:21Labour market performance in Wales
2. 4:33Young person's guarantee and REACT Plus programme
3. 6:55Young person startup grant and EU funding shortfall
4. 8:46Challenges ahead and Business Wales funding
5. 10:52Questions on the rail strike and public sector pay
6. 17:33Young entrepreneurs, skilled workers and labour shortages
7. 20:20Newport Wafer Fab and semiconductor cluster
8. 22:23Unpaid carers and needs assessments

Full transcript

2:21Thank you and good afternoon. Thank you for joining me today. I'll be talking about how the labour market is performing as we emerge from the emergency phase of the pandemic and our latest support schemes to help people into work. Overall, the labour market is performing strongly and the number of people in paid employment has recovered to pre-pandemic levels. This slide shows the unemployment rate in Wales and the UK, with Wales being the darker of the lines.

2:54You can see that in the three months to April of this year, the unemployment rate in Wales remains lower than that of the UK. It is currently at 3.5%. The Welsh unemployment rate has been consistently below that of the UK, which shows the strength of the recovery in the labour market here in Wales. Now, there are a number of reasons why both the employment and unemployment rates have recovered so well. Our fantastic vaccination programme and the financial support available from both the UK and Welsh governments during the pandemic helped to give businesses the confidence to retain employees during some of the most extraordinary times that we have experienced in living memory. However beyond the headline figures we know that our labour market is facing volatility and new challenges provoked by Covid, the cost of living crisis, Russia's war on Ukraine and increased trade bureaucracy and friction.

3:59The latest labour market figures also show economic inactivity has grown in recent months in Wales. Almost a quarter of the working age adult population, 23.3%, were classed as economically inactive in Wales. The most common reason was long-term sickness, which may include long COVID. As a government, we have made a commitment that no one will be held back or left behind in a recovery that is built by all of us.

4:33That commitment led us to create the young person's guarantee with the offer of work, education, training or business startup help for all under 25s. This is the route to a stronger and fairer Welsh economy where everyone is supported to fulfil their potential. We're taking wide-ranging action tailored to the needs of people facing barriers to work. The help we're providing is designed to reduce the number of unemployed adults and to tackle economic inactivity, helping everyone including all those who feel a long way from the labour market.

5:13Earlier this month, I launched a new programme which will provide practical and bespoke employment support as unique as the person looking for work. The REACT Plus programme will offer up to £1,500 for training, £4,500 to help with childcare costs and £300 for travel costs. We will also provide employers with wage and training support during the first year for newly employed staff.

5:43would invest £13 million a year in REAC+, giving those that need it most a clear pathway into work through the Working Wales Employability Service. To be eligible for REAC+, people must be under a formal notice of redundancy, or have been made redundant or unemployed within the last 12 months, or be aged 18 to 24 and not in education, employment or training or to be ex-offenders or offenders serving their sentence in the community.

6:17By focusing on people who are underrepresented in the labour market and those who face disadvantage and inequality in accessing work we will help to create a more equal Wales. We're also investing £8m to continue employment services, helping people recovering from physical, mental ill health and substance misuse into work and, crucially, to remain in work. The Out of Work Service and the In Work Support Service help people to rebuild their lives and I'm pleased to confirm that this support will be extended until 2025.

6:55We want a Wales where more talent is unlocked and where young people are supported to turn their business ideas into reality. So today I've launched our new young person startup grant. We're investing £5 million to support 1,200 young people to start their own business. Up to £2,000 will be available for young people who are unemployed or who have left education or training to become self-employed. This help is backed by one-to-one business advisory support, mentoring and financial management, allowing young entrepreneurs to take those exciting first steps.

7:36Wales is a great place to start a business, and I'm looking forward to seeing the dynamic new ventures our support will help to create. If you're under 25 and already considering starting a business, you can visit Big Ideas Wales to find out how to make the most of the support available. Sadly, the UK government has broken its promise to replace in full the funding Wales would have received from the EU. We'll be more than a billion pounds worse off as a result, and that has serious implications for our budget.

8:13We have traditionally used EU funds to finance those at these work support programmes. They're essential to the long-term health of our economy, and we know that by backing young people today, Today, we're helping to boost their future earnings and career choices and that's a key part of our mission to make fair work a reality for more people. As businesses struggle with shortages, we're prioritising programmes which help to ensure more people can find and keep a job with support that matches their circumstances.

8:46Taking action to prevent youth unemployment and tackle economic inactivity means more talent for businesses to hire as they rebuild for the long term the impact of the pandemic on the labor market has not been as severe as we feared with a strong rebound in hiring but as we look ahead we face many challenges high vacancy levels shortages and key areas an aging population and more people leave in the labor market early because of ill health especially among the over 50s There is unequal access to the lay market for black, Asian and minority ethnic communities, disabled people, and single parents.

9:28And we still have pay-ups for gender, ethnicity, and disability to overcome. And of course, we face an unprecedented cost of living crisis, affecting not just families, but businesses too. The programmes that I've outlined are of course only part of our wider support for a fair work economy that helps to tackle those barriers. Just last week I launched our retail strategy developed in partnership with trade unions and businesses and earlier this year I confirmed £13 million for the Wales Union Learning Fund, a hugely successful partnership that has offered so many working people a second chance at learning and improve their ability to earn.

10:14Alongside local authorities, Business Wales played a central role helping businesses at the peak of the pandemic. The service also exists to help inspire entrepreneurs and ensure smaller businesses in particular can access the information and support that they need. Broken promises on post-EU funds recklessly put this work at risk. I have chosen to prioritise this service, providing more than £40 million to extend the backbone of Business Wales up to 2025, that's two years beyond the end of our EU funding support.

10:52The Welsh Government will continue to do all that we can to support people through these turbulent times, as well as striving for a successful Welsh recovery built by all of us. thank you very much for listening i'll now take questions from journalists and i believe the first question today is from adrian masters over to you adrian thank you minister um i guess something that will cause a big hit to the economy is today's strike action um you mentioned the welsh government's partnership work with trade unions can you tell me whether or not the Welsh Government supports today's action or not? Well the Welsh Government is very clear that we don't want the industrial action to take place neither does the RMT. If this dispute were taking place in Wales I do not think we'd have reached this point because we do have an entirely different model. I talked earlier about the retail strategy developed together with businesses and trade

11:52unions in my own ministerial life when we've had challenges uh with uh future the future of pay terms and conditions we've been involved in promoting partnership not promoting conflict Sadly, the UK have chosen to promote conflict. Now, I support the right of workers to organise in trade unions. I support the right for workers to take industrial action. That is always a last resort. But actually, the way to resolve this matter is not to have more petrol on the flames, which is the approach of Grant Shapps and others in the UK government.

12:29The way to resolve this is to get people back around the negotiating table and to allow people to negotiate. And let's not forget, this is an industry where half a billion pounds of profit was generated last year. But cleaners and others are taking action today. And I don't think that the approach of the UK government is bringing people to a point where the dispute can be resolved, which is actually the approach I think everyone should want the UK government to take. quite a lot of the commentary around today is looking at the possibility of further unrest and further industrial action down the line as the cost of living crisis bites are you concerned that there might be further industrial action and if it were to be in devolved areas such as education and health what would the whilst government's approach be then Well, of course, I'm concerned about future action. I'm concerned about the impact on workers taking that action. For those of you who are watching, you know, people taking industrial action really is a last resort because you end up losing a day's pay if you take that action.

13:37I would want to see an approach that allows settlements to be reached through negotiation, not having artificial barriers in the way of that. I'd want to see an approach from the UK Treasury that allows real and meaningful negotiations to take place. The approach that the UK Treasury takes will have a real impact on all public services right across the UK. And I was concerned when the Chief Secretary of the Treasury yesterday said that there wouldn't be the ability to match inflation in those pay reviews and negotiations that are due to take place. I just think that when there's so much that is going to be difficult for the future of the country, so much that is in the UK government's gift and ability to do something about it, they could and should spend more time on doing something to resolve problems rather than see them carry on and stoke the flames into the future. Here in Wales we'll continue to an open approach with trade union partners businesses and public services will be entirely open about the budget available to us and what that means for the negotiations that will take

14:38place but the future looks very difficult and that is a future that is being deliberately created by the uk government Thank you, Adrian. I've now got Dan Davis from the BBC. Thanks, Minister. Do you think the 7% pay rise that the RMT is seeking for its members is fair and reasonable? Well, I'm not involved in the dispute, as you know, because there isn't a dispute here in Wales. As I've said, I completely support the right for workers to organise in trade unions, to take action and put in pay claims.

15:10And you yourself and every other working person watching this will be looking at their own pay packet and the rising cost of inflation. And of course, you know, the cleaners and others who are taking industrial action today have seen, as I said earlier, an industry that generated half a billion pounds in profit last year. I think the responsible approach is to encourage people to come back to the table, to work through what is possible and what is achievable, and to have an open approach that aims to resolve the dispute rather than to prolong it.

15:42That's the approach you could expect to take place here in Wales with a focus on resolving matters in partnership, not an approach that seeks to promote conflict at every opportunity. I mean, the Welsh Government is also a big employer and there are unions in the Health Service, for example, who say that their members need um an inflation proof or in both above inflation pay rises um it's very likely that there'll be other Other unions will be saying the same thing for their members. How likely is that to happen or how likely is it that we'll see disputes and industrial action in the public services that the Welsh Government is ultimately responsible for?

16:33Well, as I said in response to Adrian earlier, the reality is that if the UK Treasury take an approach where they're not prepared to provide the resource for inflation-related pay rises, that means there is real difficulty for all of us. we'll be entirely open and honest with trade unions about what is possible to do in each and every one of our areas and we'll be focused on getting people into a negotiating position where everyone understands what really is achievable and possible that's not the approach we're seeing from the uk government there is a really unpleasant relish that you can see from uk ministers in talking up the prospects of a dispute and taking one side within this that won't be the approach of people take here in wales in the welsh government as i say we'll be honest we'll be straight and we'll work in social partnership as we have done as i have done in my ministerial life in my previous role and in this one we've encouraged people to find a negotiated answer

17:33the best possible answer for workers and the public that they serve I've now got Sean Barry from Wales Online. Thanks Minister. Can we just talk about some of the support you've announced for young people hoping to become entrepreneurs? Do you think a logical step would be the funding side of the ledger and the potential maybe for the Development Bank of Wales, which you wholly owe, to create a dedicated entrepreneurship fund for young people under 25, whether that's debt or equity? And you mentioned some of the economic data concerns around economic and activity.

18:06What are your thoughts on the great resignation? No skilled people in the Welsh workforce who were invaluable, who just left the workforce and there are no immediate signs of their return. How do you encourage those people to come back into the Welsh workforce, which will be a key factor in improving productivity? There are two things. The first is we're always interested in what the development Bank can do to support Welsh Government priorities and helping to build a fairer and greener economy. I'm interested in your idea but actually the the outline of your idea isn't one of the things I can comment on in detail today about whether that's the right thing to do. We have regular conversations with the Development Bank for Wales. What we're doing today is looking at direct support that we can provide and support not just in the financial terms but of course the business support and advice to both generate an idea to see it start and then the ongoing support through that crucial first year. On your second point about the loss of skilled workers it's an obvious concern and it's one of the things about

19:07The position we find ourselves in is that we have more vacancies than available labour at present. And that's why I mentioned economic inactivity. People have left the workforce. And I am particularly concerned about the fact that those will be often skilled and experienced workers who have left. So part of what we're looking to do is to see how we can help to support people to return to the workplace, even if it's on reduced hours or different hours, because the loss of those skills and experience is important, not just the overall economy, but actually for younger workers who could look to learn from those more experienced operatives.

19:42And there is just a general problem and a challenge in getting enough skilled labour. It's also part of the reason why the loss of a billion pounds of funding from Europe really does matter. The fact that hasn't been replaced will directly affect our ability to provide the sort of skill support we would otherwise want to have. And I was meeting earlier today with the Visitor Economy Forum and they were very clear they need more people available for work and they want to be able to invest in the skills of those people to make sure they've got a healthy and thriving sector for the future.

20:20I don't know if Sean has a follow-up question, but I'll tell you. Oh, yeah. I was just going to ask you about Newport Wafer Fab. That's now subject of an investigation by Bayes under the new Security and Investment Act. I mean, Mr, would you have any concerns about a key asset in the wider compound semiconductor cluster for South Wales continuing to be in Chinese ownership? Well, rather than asking the question from a pejorative point of view, I think the important thing is that there needs to be certainty. The UK haven't had a long time to investigate the national security aspects of this. And of course, the company you referred to also own Wapor Fab production units in the rest of the UK as well. What needs to happen is there needs to be a choice made. So there's certainty, not just for this business, but for the wider cluster, because people do rely on each other in the cluster.

21:16There are challenges about how investment choices are made. So I'll be certainty on a decision. I want to then see that people can then make investment choices in the future with real confidence about who they're doing business with and why. Now, I'm not privy to all of the national security considerations that the UK government are considering. But given the length of time they've had to look at this, I really do hope we can swiftly reach a resolution because this compound semiconductor cluster is important not just for Wales, but in UK terms as well.

21:50I want to see certainty, I want to see a strategy for the future with DCMS having taken a long time on designing a strategy around this, because this is an area that I expect to grow in importance and value. These are good jobs, we want to see more of them come to Wales, and we stand ready to help support businesses, as we have them in the past, but we really do need certainty and an actual decision to be made by the UK Government, rather than kicking the can further down the road. Thank you, Sean. The next person is Tom Magda from Carers World Live.

22:23thank you very much indeed minister can i ask my first question to you as a former health minister from that role you will be aware that unpaid carers have rights to needs assessment under the social services well-being wales act but yet i'm hearing from increasing numbers of viewers to care as well live but telling me they've been poorly treated by local authorities across wales What intervention do you believe the Welsh Government should make to ensure that unpaid carers have the highest priority for prompt, accurate and compassionate needs assessment in local authorities?

22:59Well, the starting point is that local authorities need to meet their statutory obligations, and there is an obligation. It's not a choice where you can undertake a carer's assessment if you feel like it. There's an obligation to do that. And not just then meeting the statutory obligation to undertake the assessment, the point you made about the compassion and the understanding for it to be a real assessment of the needs of those carers. Now, I understand the local authorities themselves are under a range of pressures, but actually, this tutor that we've introduced is to try to make sure that the value of the contribution of unpaid carers is not just recognised but supported because if that contribution falls away there'll be even more pressure on statutory services so if you wanted to provide examples that you've got tom then i'm sure that the ministerial team in health and social service would be interested in that and look to have useful conversations with officials in both the Welsh Government and indeed in local authorities where you identify there to be a challenge.

23:58Thank you very much indeed for that offer, we'll certainly be taking that up. Could I just ask you now, as Economy Minister, given that 96% of care across Wales is provided by unpaid carers, would you agree with me that if all unpaid carers had the needs assessments that are required and had the resulting support in place, the Welsh economy would be all the better for that? Well, I think successfully supporting unpaid care is both helps with public services. It should help with the care that people provide and people's lived experience to live a fulfilling life. And I also do think that would make a positive difference for the economy. The challenge, as you've identified in your first question, is making sure those assessments are undertaken, make sure they're properly undertaken, so the carer themselves have the support that they need to carry on with their unpaid care contribution.

24:48And it's almost always for a loved one, a friend or a member of the family that don't want to give up those caring responsibilities. They want to be supported to undertake. And that, of course, makes a big difference for the loved one that they're actually caring for. That's why this measure was introduced many years ago when I was at the start of my time as a Senate member, still a backbencher. That's when the legislation got passed. So we want to see this embedded. so it's no longer a point of dispute and misunderstanding, it's an expectation from all sides because we recognise the value this will provide for everyone. I hope that deals with a question, Tom, and I'm sure ministers and health and service services look forward to your correspondence for any examples as you indicated you would do.

25:30Thank you. Many thanks, Tom. I think that brings matters to a close for today. I look forward to seeing you in the future.

Source and licence

Recording: File:Cynhadledd i'r Wasg Press Conference 21.06.22.webm by https://www.youtube.com/channel/UCqLR2NQK4a7P6dwsn02srng Welsh Government / Llywodraeth Cymru Institution:Senedd Cymru – Welsh Parliament (2022-06-21), via Wikimedia Commons. Licence: CC BY 3.0.

The transcript is machine speech-to-text by the TidyTools Audio & video transcriber; the summary, key points and chapters were written by Claude from that transcript. Both may contain errors: check the recording before quoting it.