Wellbeing of Wales 2025 - Main points

Summary of main points from the Wellbeing of Wales report 2025.

Economic performance has been mixed over the past year. The labour market has weakened, with job losses concentrated in relatively low-paying private sector industries. 

Longer-term trends show that Wales continues to lag behind the UK average in economic output and household income, though comparisons with similarly structured UK regions show more alignment. Relative income poverty in Wales has declined over the long term, with 22% of people affected in 2022 to 2024 compared to 25% in the late 1990s. Children remain more likely to experience poverty, though their rates have also fallen, with 31% affected in the latest period. Household incomes in Wales are closer to the UK average than economic output measures, particularly when using median income as a measure.

Employment gaps between Wales and the UK have narrowed since the turn of the century, with Wales outperforming some English regions over the medium term. However, Wales still has a higher proportion of people earning below the real living wage, and evidence on job quality and pay gaps presents a mixed picture. The proportion of young people aged 16 to 24 in education, employment or training rose to 86.4% in 2023, up from around 80% in 2010 to 2012. This marks encouraging progress towards the national milestone of at least 90% by 2050.

Qualification levels in Wales continue to improve, moving closer to the national milestone of 75% of working age adults being qualified to level 3 or higher by 2050. In 2024, 68.6% of working age adults were qualified to level 3 or higher, and six local authorities had 5% or fewer adults with no qualifications. Both figures have improved since 2023. However, attainment in secondary schools has declined slightly since the pandemic, with children from deprived backgrounds continuing to have poorer outcomes.

Innovation in Welsh businesses has fluctuated since the 2008 recession, with some signs of improvement in recent years. Managing the balance between economic growth and the development of a low-carbon economy remains complex, but there are positive signs in some sectors.

Data for some of the national indicators suggest that progress is being made towards the resilient Wales goal, but some of this progress has slowed recently. Biodiversity has declined over the long term but stabilised more recently. Soil carbon levels are generally stable, though losses have been observed in arable land and broadleaf woodland. Water quality has improved over recent decades, but challenges remain. Air quality has also improved since the 1970s, though it continues to pose risks to health and nature.

Wales has made significant progress in reducing waste and increasing recycling rates, but resource use remains unsustainable. Renewable energy capacity increased in 2023, with the highest installation rate in five years, though still far below the peak seen in 2015.

Limited progress has been made towards a healthier Wales. Healthy life expectancy has declined for both men and women since 2011 to 2013, with widening gaps between the most and least deprived areas. The proportion of single babies born with low birth weight has increased to 6.3%, the highest rate recorded.

The percentage of adults with two or more healthy behaviours declined before the pandemic but has improved slightly since financial year 2020 to 2021. Among young people, healthy behaviours have improved since 2017. Adult mental wellbeing scores have remained stable, while scores among young people have declined, with widening gaps based on family affluence. Housing conditions have improved, with 82% of dwellings free from serious hazards in 2017 to 2018, up from 71% in 2008.

Progress towards a more equal Wales remains mixed. The gender pay gap has narrowed to 1.9% in 2024, but ethnicity and disability pay gaps remain volatile, making it difficult to assess long-term trends. Employment rate gaps have narrowed over the past decade, with improvements for disabled people and people from a Black, Asian and Minority Ethnic background.

Poverty levels have remained stable, with around one in five people living in relative income poverty. Children, disabled people, and ethnic minorities are more likely to be affected. Self-reported mental wellbeing has declined since financial year 2016 to 2017, with older people, non-disabled people, and people from a Black, Asian and Minority Ethnic background generally reporting higher wellbeing. Feelings of safety have remained broadly unchanged, with men consistently reporting higher levels than women.

Recent data shows a return to pre-pandemic levels across several community cohesion indicators, including satisfaction with local areas and influencing local decisions. 

Volunteering has increased, exceeding the national milestone, while feelings of safety remain stable. 

Homelessness prevention rates have slightly declined, and rough sleeping has increased. Despite the proportion of adults who are victims of crime remaining relatively stable, public concern about rising crime has returned to pre-pandemic levels, after a drop in 2022 to 2023.

Progress towards this goal is inconsistent. Adult engagement in arts, culture and heritage has remained stable, with 72% of adults participating at least three times a year. However, children’s participation in the arts has declined and is now at or below levels seen a decade ago.

Adult sports participation has increased over the long term, though it fell in financial year 2024 to 2025. School sports participation has returned to levels seen in 2013. 

The number of Welsh speakers fell according to Census 2021, with daily use remaining stable at 11%. 

Museum and archive accreditation has improved, particularly for archives. Conditions of listed buildings have improved slightly, while scheduled monuments have worsened.

Greenhouse gas emissions fell by 6% in 2023 and are down 38% from the base year. Wales’s global footprint remains over twice its biocapacity, despite reductions since 2004. Participation in global citizenship education continues, with thousands of entries across key stages.