Agenda item 2: skills forward look

SPC Members are asked to: 

• note the contents of this paper, including the findings of the Employer Skills Survey (ESS 2024) UK research report and plans for a National Skills Audit for Wales
• note that the Employer Skills Survey (ESS 2024) Wales research report will be published on 26 February
• share initial views on the key priorities for skills going forward, including the possible development of a Major Investment and Infrastructure Skills Service for Wales to mirror planned developments in England.

1. The Welsh Skills System is a demand-led framework designed to align education, training, and workforce development with the needs of employers, employees and the economy. It is underpinned by an ambition to support sustainable growth, social mobility and fair work across Wales as a key enabler to better lives. 
    
2. In relation to skills planning and provision, the Welsh Government works closely with key partners including Medr, Regional Skills Partnerships, Trade Unions, industry bodies, businesses, entrepreneurs and academia. The emphasis is on working in social partnership and collaboration between government, employers, and training / skills providers. There is a very close relationship between skills, employability interventions, business support delivery, and capacity building.
    
3. Skills prioritisation is a key component of the skills system. Although skills policy is devolved to Wales, the workforce and labour market are strongly influenced by wider UK Government policy on skills and related decisions on immigration and employment regulation. Wales’ workforce and skills needs must be viewed within this context; UK-level measures such as salary thresholds for work visas, temporary shortage occupation lists, and migration policies directly affect the availability of skilled workers in Wales, shaping recruitment strategies and the ability to fill critical roles across sectors. 

4. The most recent Employer Skills Survey 2024 (ESS 2024) UK Research Report was published 27 November 2025. The ESS 2024 comprised 8,639 interviews with employers in England, 3,388 interviews in Northern Ireland, 5,605 in Wales, and 5,080 in Scotland. It also covers findings from the follow-up Investment in Training survey of 5,935 employers, comprised of 2,150 employers in England, 883 in Northern Ireland, 1,395 in Scotland and 1,507 in Wales. A summary of the key findings is provided in the accompanying Annex. A follow-up Employer Skills Survey (ESS) 2024 Wales research report will be published on 26 February.
    
5. The establishment of Skills England by the UK Government has led to yet further activity in this space, with analysis covering the wider UK. Skills England publications in 2025 included sector skills needs assessments, future employment demand reports, and an analysis of the artificial intelligence upskilling required to match employers’ needs, 
    
6. The UK government’s Modern Industrial Strategy, published in June 2025, and the identification of the eight priority industrial sectors set out there, is driving the work of Skills England and other delivery partners and will be supported by the Growth and Skills Levy which replaces the Apprenticeship Levy in England. In addition. the recent UK White Paper on Post 16 Education and Skills, and the work of the Migration Advisory Committee and its Labour Market Evidence Group, mean there is considerable activity at a UK level that requires tracking to ensure the needs of Wales are fully reflected. 

7. In Wales, the Regional Skills Partnerships (RSPs) have had a key role in identifying regional skills priorities informed by the views of employers. They promote Vocational Education and Training as part of their remit, and skills needs are captured in employment and skills plans which are published every three years and refreshed annually. Each plan is underpinned with labour market information and regional recommendations inform Welsh Government’s skills policy direction.
    
8. Since 2024, RSPs have been working closely with Medr to help inform the prioritisation of apprenticeships and work-based learning provision. RSP employment and skills plans are used to identify priority sectors underpinning National Occupation Standards, future and existing Net Zero skills demands, Welsh Language skills, employability skills and emerging technologies such as Artificial Intelligence and digital skills. Welsh stakeholders such as Careers Wales, the further and higher education sectors also use the plans to inform their own organisational planning processes. 

9. The most recent national skills audit in Wales was conducted more than a decade ago in 2012. While much of the current activity by the UK government is highly relevant to Wales also, proposals have been developed for a new national skills audit which will establish a clearer understanding of Wales’ workforce and skills needs, including Welsh language skills, and how that is supported through supply-side activities in education and training. This will build on recent activity on skills and employment in Wales at a national and regional level (via RSP Employment and Skills Plans). The audit will commence in March 2026 with the findings available towards the end of the year.

Aims and objectives of the National Skills Audit

10. The aim of the audit will be to provide robust intelligence on Wales’ current and future skills, at as granular a level as possible. The audit will facilitate clear prioritisation of current and future strategic skills policy based on the strongest available evidence. The purpose of the audit will be to inform the decision-making of policymakers, employers, education and training providers, and other stakeholders, enhancing the ability of the skills system to meet current labour market demand and be more responsive to anticipated future demand.

11. The SPC has previously discussed the UK Industrial Strategy’s implications for Wales and the opportunities and risks presented by regional developments such as Freeports and investment Zones. More recently, there have been further major announcements relating to Wylfa and Celtic Sea Floating Offshore Wind.
     
12. We understand that Skills England is developing a new Major Investment and Infrastructure Skills Service, which will provide account management for major projects to ensure they have access to the skills they need. The Minister for Culture, Skills and Social Partnership led a North Wales Skills Summit in Llangefni on 22 January which recommended a similar approach should be developed in Wales, one which would bring all key partners together to foster a collaborative, unified approach to maximising the benefits of major regional investments.

13. The Social Partnership Council is invited to comment on the key findings from the 2024 Employer Skills Survey and plans for a national skills audit for Wales. It would be particularly helpful to have the Council’s views on the need for a more coordinated approach, led by the Welsh Government, to aligning skills support for major regional investment and infrastructure proposals in Wales.

Equity, Diversity and Inclusion (EDI)

The content of this paper does not raise any specific EDI issues. However, there is a need to ensure that current and future skills interventions fully support EDI at local, regional and national level.