“Outcomes not egos” call over Structural funds as Welsh economic inactivity rates are revealed

The number of economically inactive adults in Wales remains significantly above the UK average according to new statistics released by the Welsh Government. The news comes despite record employment levels in Wales.

Shadow Economy Secretary, Russell George, said the figures highlighted the need to improve outcomes from structural funds.

Welsh economic inactivity rates remain stubbornly above UK figures, with 23.6% of Welsh adults (16-64) said to be economically inactive compared to just 21.5% across the UK as a whole.

Statswales have also published data which identifies local authority areas in Wales with the highest rates of economic inactivity – with Merthyr top (26.5%), followed by Blaenau Gwent (26.3%) and Neath Port Talbot (26.2%).

The latest figures, for the period May-July 2016, indicate almost no change in Wales (down 0.5%) compared to the same period in 2015.

Meanwhile, the number of economically inactive women in Wales has risen by 1.1% since 2015, with 261,000 women now said to be economically inactive; 27.3% of all 16-64 year-old women.

Mr George said:

“The picture is overwhelmingly positive, with record-breaking jobs figures and a Welsh employment market rapidly bridging the gap with the rest of the UK.

“But whilst welfare reforms are starting to contribute towards falling unemployment in areas like Merthyr and Blaenau Gwent, we do need to see action from the Welsh Government to ensure that it’s efforts are targeted towards reducing economic inactivity in the poorest parts of Wales.

“Labour has failed to make the most of successive rounds of EU structural funding, and the next generation of schemes which follow our exit from the European Union must be better targeted and deliver positive outcomes.

“There is also the matter of more than £1 billion of structural funding yet to be allocated between now and 2020, and outcomes must be paramount – not egos.

“Just because these schemes have been administered in a certain way before, doesn’t mean they will always be and we shouldn’t be afraid to focus on what works for Welsh communities.”