Employer Skills Survey 2024 (Wales regional reports): main findings

The Employer Skills Survey 2024 (ESS 2024) is the seventh in a series of UK-wide large-scale employer surveys. The ESS 2024 included 5,605 employers in Wales. Survey fieldwork took place between June 2024 and January 2025.

Interviews were carried out by telephone with staff responsible for recruitment or workforce development. The survey used a random probability sampling approach, meaning that eligible sites within each sampling group had an equal and known chance of being selected. The overall response rate in Wales was 71%, defined as ‘achieved interviews’ as a proportion of all respondents who were successfully contacted.

The survey provides detailed evidence on employers’ experiences of recruitment challenges, skills gaps within their existing workforce, and responses through training and workforce development. It also includes new information on artificial intelligence (AI) and Net Zero activity.

This release summarises findings at a regional level across Wales for north, mid, south east, and south west Wales, and a combined south west and mid Wales.

The regional outputs include:

• reports summarising findings
• slide packs highlighting main messages
• detailed data tables

These outputs provide useful data for regional and local partners for planning purposes.

Not all differences reported between regions are statistically significant. Findings are based on employers’ views and should be read alongside the accompanying methodology information.

The ESS 2024 regional findings broadly reinforce the national picture. Labour market demand eased across Wales in 2024, with fewer employers reporting vacancies and reduced recruitment pressures. Some regional variation was evident.

The reports showed the following.

Recruitment and skill-shortage vacancies (SSVs)

• Vacancy levels decreased across most regions compared with 2022, but remained broadly stable in mid Wales.
• Reported vacancies were highest in south east Wales and lowest in mid Wales.
• SSVs, the proportion of vacancies employers describe as difficult to fill due to a lack of skills, experience or qualifications amongst applicants, declined from their 2022 peak across all regions.
• SSVs still accounted for over one quarter of vacancies and remain above pre-pandemic levels.
• SSV levels were highest in south east Wales and lowest in mid Wales.
• Skills gaps fell since the last survey in 2022 and are now at their lowest recorded level in the ESS series.
• Fewer employers reported skills gaps than in 2022, but the proportion of the workforce affected remained broadly unchanged.
• Regional skills gap incidence and density remained broadly in line with 2022 and 2019 levels, with higher levels in south east Wales.
• Specialist technical skills and core transferable skills, particularly time management and problem solving, were the most reported skills gaps.

Training and workforce development

• Over the longer term, employer investment in training has declined, although levels of training provision were broadly unchanged compared with 2022.
• Employers in south east Wales were most likely to provide training.

AI and Net Zero

• Use of AI was highest in south east Wales.
• Employers in mid Wales were more likely to report having a Net Zero strategy.

Labour demand eased across Wales in 2024 compared with 2022, with fewer employers reporting vacancies (17% in 2024 vs 22% in 2022). Vacancy incidence (the number of sites reporting at least one vacancy) were highest in South East Wales (19%) and lowest in Mid Wales (13%).

Since 2022, SSVs decreased across all regions, indicating some easing in recruitment pressures. However, SSVs still accounted for 28% of vacancies (down from 35% in 2022) and remain above pre-pandemic levels. This equated to 10,100 SSVs in Wales in 2024, less than half the number seen in 2022 (20,600) but in line with 2019 (9,800) and 2017 (9,900).

On average, 6% of employers across Wales reported SSVs. The proportion of employers reporting SSV incidence ranged from 7% in south east Wales to 4% in mid Wales.

SSV density (the proportion of vacancies that are skill-shortage vacancies) presented a more mixed picture. While SSV density decreased in mid Wales and south west Wales since 2022, it has remained broadly unchanged in north and south east Wales. Overall, SSV density levels were highest in north and south east Wales (both 32%), and lowest in mid (23%) and south west Wales (21%).

The most reported impact of SSVs was increased workload for existing staff, as was the case in 2022.

Specialist skills or knowledge remained the most frequently cited skills lacking among applicants for all regions (ranging from 76% for south west Wales to 62% for North Wales). Employers also commonly reported gaps in time management and task prioritisation.

Overall, skills gaps in Wales in 2024 decreased from 2022 and were at their lowest recorded levels in the ESS series.

The proportion of employers reporting skills gaps (skill gap incidence) decreased from 14% in 2022 to 12% in 2024. However, the proportion of the workforce affected remained broadly unchanged (3.9%).

Regional patterns suggest little change, with both the incidence and density of skills gaps remaining in line with previous years. Regionally, the proportion of employers reporting skills gaps was highest in South East Wales (14%) and lowest in Mid Wales (8%). Skills gap density was highest in South East Wales (4.5%) and lowest in Mid Wales and South West Wales (both 3.3%).

Across regions, most skills gaps were linked to transitional factors, including employees being new to their role or still in training (combined, 81%).

Time management and task prioritisation was the most reported skills gap for 3 of the 4 regions (north, south east and mid Wales).

Training remained a main response to skills challenges in 2024, with overall employer provision broadly unchanged since 2022, despite a longer-term decline in employer engagement. Employers in south east Wales were most likely to provide training (64%), while mid Wales had the highest proportion of staff trained (67%).

The proportion of the workforce trained increased slightly in most regions but decreased in south west Wales (from 63% to 61%). Since 2022, average training days fell in north and south west Wales (to 4.9 and 5.3 days respectively), but increased in mid Wales (5.2 to 5.8) and south east Wales (7.4 to 8.0).

Apprenticeship provision has remained broadly stable across regions since 2019.

Employers were most likely to offer apprenticeships in south east Wales (18%) and least likely in mid Wales (14%). 

Around 1 in 6 (16%) of employers that had apprentices reported that at least one of their apprentices were undertaking their qualification in Welsh or bilingually, with variation across regions. Bilingual provision was lowest in south east Wales (7%) and highest in south west Wales (27%). One in 5 employers (20%) reported they would benefit from a wider Welsh‑medium or bilingual offer, with highest demand in north Wales (29%). Demand is higher among larger employers and in the education (34%) and health and social work (28%) sectors.

HPW practices support the effective use of workforce skills. Employers are classed as HPW where they adopt seven or more of the ten practices measured. Use of HPW practices remained limited as 6% of employers in Wales met this threshold (around 1 in 20 sites) in 2024. The proportion of HPW employers was highest in south east Wales (7%) and lowest in north Wales (4%).

Use of AI varied across regions. AI use was highest in south east Wales (14%) and lowest in north and mid Wales (both 10%).

Employers were also asked about Net Zero strategies. The proportion of employers with a Net Zero Strategy was highest in mid Wales (17%) and lowest in south west Wales (13%).

Employers already at Net Zero were most common in south west Wales (5%).

Report author: IFF Research

Views expressed in this report are those of the researchers and not necessarily those of the Welsh Government.

For further information please contact:

Employability and Skills Branch
Social Research and Information Division
Knowledge and Analytical Services
Welsh Government
Cathays Park
Cardiff
CF10 3NQ

Email: KASEmployabilityandSkillsResearch@gov.wales