Calls for fair, skilled and innovative work in Wales ahead of pivotal 2026 election

The CIPD, the professional body for HR and people development, has today launched its 2026 Wales Manifesto, calling on policymakers to prioritise fair, skilled and innovative work to strengthen Wales’ economy and improve jobs and working lives.

Drawing on research and engagement with employers and people professionals across Wales, the CIPD’s manifesto - Fair, skilled and innovative work for Wales - sets out a range of practical recommendations to address workforce challenges in Wales. These include the rise of AI and automation, an ageing workforce, skills shortages and high rates of overqualification. 

Among its proposals, the CIPD calls for an apprenticeship guarantee for 16–24 year-olds after CIPD data* revealed that 76% of UK employers would support this move which could help bolster youth employment and skills shortages.

Figures from the UK Annual Population Survey (APS) reveal that around 465,100 people aged 16 to 64 in Wales were not in work last year, giving Wales a 24.1% economic inactivity rate, higher than the UK rate of 21.3%.**

Launched ahead of the pivotal 2026 Senedd election, the CIPD’s manifesto sets out recommendations across three priority areas to better align public policy with labour market needs in Wales and boost the region’s productivity and economic growth:

Fair work – The CIPD urges the Welsh Government to work with employers to identify and remove barriers to employment, with more proactive use of devolved powers across childcare, health and skills systems. This includes expanding funded childcare to children under two years old, to support more parents in balancing work with caring responsibilities.  

The manifesto also calls for clear employer resources, guidance and case studies to help organisations understand the concept of fair work and how to implement fair working practices and raise the quality of jobs.

Skills - To better align skills supply with labour market demand, and strengthen Wales’ skills system, recommendations include upskilling and reskilling interventions such as reforming Personal Learning Accounts into buildable accounts, targeted at learners in priority sectors. A responsive all-ages careers service along with flexible apprenticeships and hiring incentives for apprentices are also proposed as jobs and industries continue to evolve.

Innovation – Recognising that the responsible adoption of generative AI and automation relies on effective people management, the CIPD calls for enhanced business support services to help organisations strengthen their people management capability and adopt new technologies to boost innovation and productivity. Stronger partnerships between education providers and businesses are also proposed to drive more innovative work across industries in Wales.

The CIPD has long supported organisations of all sizes to navigate workplace issues and improve work and working lives. But the professional body warns that without decisive action, Wales risks falling behind on productivity, while labour shortages, skills gaps and unemployment will continue to constrain growth.

The CIPD’s Manifesto highlights that government action alone is not enough to navigate these pressures, emphasising the importance of a partnership approach between employers, employees, education providers, and policymakers to build a labour market that is resilient, sustainable and fit for the future.

Marek Zemanik, Senior Public Policy Advisor, for the UK nations at the CIPD said:  

“Wales is at a time of profound change. Political developments, demographic shifts in the workforce, and emerging technological trends are transforming both the nature of work and the skills required for jobs in Wales.

“Employers are also navigating rising employment costs that are deterring some from recruiting, which could further constrain job growth. Against this backdrop, and with a Senedd election approaching, it is more important than ever that the next Welsh Government steps up and takes decisive action to help improve work and working lives in Wales.

“A partnership approach with organisations, combined with a clear focus on fair work, skills and innovation will be key to driving a more productive labour market and a thriving economy in Wales.”