Gaps between skills provision and employer demand, alongside constraints in funding and access, are limiting Wales’ ability to improve productivity.
Leaders from education, business and industry who took part in a roundtable hosted by Business News Wales and the Wales Productivity Forum said the current system is not sufficiently aligned to the needs of the economy, with challenges spanning education, training and workforce development.
A central concern was the lack of a clear, shared direction on which sectors Wales is seeking to grow, making it more difficult to plan skills provision and investment over the long term.
Sharon James‑Evans, principal of Cardiff and Vale College, highlighted the strong and sustained demand for training and apprenticeships, while noting that providers are navigating a period of change as the system adapts to evolving skills needs. She emphasised the opportunity to better support young people by strengthening pathways into education, employment and training, and ensuring that talent is equipped with skills that align more closely with labour market demand.
Sharon stressed the importance of closer collaboration between education and industry, with clearer identification of priority sectors and stronger, more strategic partnerships between employers and providers. She noted that demand for vocational routes remains consistently high and that there is significant potential to expand apprenticeship participation, particularly among small and medium‑sized enterprises.
Participants recognised that simplifying apprenticeship funding arrangements and improving consistency across the UK would make it easier for employers to engage, helping to unlock further growth. There was also discussion around the need for funding models to better reflect learner demand, enabling providers to plan with confidence and respond more flexibly to skills needs.
More broadly, the discussion pointed to a need for greater flexibility in how skills are delivered. Employers are increasingly seeking shorter, more responsive training routes that can be aligned to immediate business needs, rather than longer qualification-based pathways.
Chris Meadows, director at CSconnected, said there is also a need to improve awareness of career opportunities in key sectors, particularly in areas such as advanced manufacturing and technology, where roles are often not well understood by young people or educators.
Participants said this lack of visibility can affect both recruitment and long-term workforce development, with some industries struggling to attract talent despite strong growth potential.
The importance of skills was also linked to wider economic outcomes, including productivity, earnings and health. A more highly skilled workforce was seen as critical to supporting higher-value activity and improving long-term economic performance.
At the same time, participants stressed that skills policy cannot be considered in isolation. Links between education, health, housing and employment were highlighted as important factors influencing both participation in the workforce and long-term outcomes.
There was also a focus on the need to support individuals earlier in life, with evidence suggesting that early years development, confidence and wider non-technical skills all play a role in shaping future productivity.
Overall, participants said that while Wales has strengths in its education and training system, addressing misalignment, improving access and providing more stable funding will be essential to ensuring that skills can support productivity ambitions.
