Youth Unemployment in Wales Soars Nine Times Faster Than Scotland as Local MP Warns of "Lost Generation"

New figures highlighted by the Welsh Liberal Democrats show a sharp deterioration in youth unemployment in Wales, with unemployment among 16–24-year-olds rising by 9.5 percentage points between 2024 & 2025, almost nine times faster than in Scotland (1.1 percentage points) and five times faster than the UK average (1.9 percentage points).

There are now 32,800 unemployed young people in Wales, with a youth unemployment rate of 16.3 per cent. That is significantly higher than Scotland's rate of 12.6 per cent and above the UK average of 13.5 per cent. Wales is now closer to countries with long-standing youth unemployment problems, such as France and Italy, than many other parts of the UK and risks reaching levels seen in Spain and Greece if the current trajectory continues.

The Welsh Liberal Democrats warned that Wales risks creating a "lost generation" unless urgent action is taken to reverse years of economic underperformance.

The party says the figures reflect the failure of successive Labour & Conservative governments to secure the infrastructure investment, research and development funding and economic growth Wales needs to create high-skilled jobs. They also warned that Labour's increase in National Insurance contributions is making matters worse, with businesses contacting David Chadwick MP to report that rising employment costs have forced them to reduce recruitment and, in some cases, let younger workers go.

The Liberal Democrats are calling on the new Plaid Cymru-led Welsh Government to immediately reverse the previous Welsh Labour Government's 25 per cent cut to the apprenticeship budget and prioritise skills and workforce development.

The party also warned that soaring housing costs and growing student debt are making it harder for young people to build their lives in Wales, while thousands continue to leave for opportunities elsewhere in the UK. This brain drain reduces the tax base, weakens local economies and places greater pressure on public services as Wales's population ages.

Commenting, Welsh Liberal Democrat spokesperson David Chadwick MP said:

"Wales is heading in the wrong direction, and these figures should be setting alarm bells ringing in both Cardiff Bay and Westminster.

"The most alarming statistic is not where Wales is today, but how quickly the situation is deteriorating. This is not an unavoidable trend. Other parts of the UK are showing that far better outcomes are possible. The question is why young people in Wales are paying the price for years of economic failure.

"For too long, Labour and Conservative governments have failed to secure the investment Wales needs to succeed.

"At the same time, businesses are telling me that Labour's National Insurance jobs tax is forcing them to scale back recruitment and, in some cases, let younger workers go altogether. That is the last thing Wales needs when youth unemployment is already rising so rapidly.

"The new Welsh Government must act immediately by reversing Labour's damaging 25 per cent cut to apprenticeship funding and putting skills and job creation back at the heart of economic policy.

"If young people cannot build their futures in Wales, Wales cannot build a prosperous future for itself. The Welsh Liberal Democrats will continue to champion our younger generations in both Westminster and the Senedd."

ENDS