When the Brexit results were announced, Wales had voted to strongly leave the EU. Because Wales was one of the direct recipients of funds from the EU especially for the Agricultural sector, it was expected that the employment rates would plummet. This impact has started being realized with unemployment rates rising slightly.
From the start of the year 2017, joblessness has gone up with 1.0% which means that about 4.4% of the entire workforce is idle. However, it is difficult to attribute this drop to Brexit because the employment levels in Wales remain relatively higher compared to the rest of the UK where about 4.9%c of people are jobless.
The economic activity in Wales has slowed down
Wales like other countries is subject to global economic forces that are often out of control. The Office for The National Statistics indicated that there are 18,000 fewer people working in Wales compared to the number before falls. What is more worrying is the slow pace of economic recovery compared to spring of 2016 and 2015.
In his view, Crowny Jones, the First Minister insisted that the shrinking employment and inactivity levels are higher compared to the rest of the UK. He added that about 24,000 more people in Wales are in employment compared to the situation about 12 months ago. Though the levels are still worrying, Jones pointed that the ambitions for Wales are big and they will work harder to improve the situation. The focus is ensuring that businesses are supported to guarantee jobs sustainability through training.
What wales figures mean when compared to the rest of the UK
A closer look at the entire UK unemployment rates shows that it has fallen to the lowest point in more than a decade. However, even the number of those at work has equally shifted downwards. By November, the total number of jobless people was about 1.6 million which indicated a significant fall with about 52,000 people compared to the previous months. Despite the rising level of unemployment in the UK, the levels still stand lower compared to other countries in Europe.
Many people have interpreted the unemployment rates in Wales to indicate that it can rise after Brexit and still remains economically viable. Once the government stops remitting the money it was contributing to the EU, redirecting it to Wales and other areas could help to create even more employment. However, this is not expected to be smooth because the UK will have to renegotiate with EU to continue trading with its members.
The rising levels of unemployment in Wales can be termed as normal because the rates are even lower than those of the UK as well as other countries in the UK. With the extra efforts put in place by the Welsh government to support the businesses to sustain job creation, the situation is expected to improve. However, the UK government must work on seeking new markets for its industrial and agricultural products including renegotiating with the EU for larger market access.