LOCAL MS Samuel Kurtz has criticised Labour and Plaid's 27-year governance following the IFS report on Wales’ economic struggles, noting falling employment and lower earnings.

The report highlights that Wales’ employment rate is falling further behind the rest of the UK, while earnings and living standards remain lower, leaving Welsh households worse off.

Wales’ employment rate has long been below the average rate for the rest of the UK. Progress was made during the 2000s and early-to-mid 2010s but falls in Welsh employment since the COVID-19 pandemic mean the gap has widened again – to around 4 percentage points (71 per cent versus 75 per cent) as of 2025.

While well-attested problems with labour market data mean the precise figures must be treated with some caution, the reopening of the employment gap can be seen in a range of data sources.

As well as lower employment, Wales has long had lower earnings than the rest of the UK. In 2025, Wales’ median monthly earnings (£2,401) were 5 per cent below the UK median.

The gap for mean earnings – which is affected more by the earnings of high earners than the median – is larger at 16%. This reflects the fact that Wales has relatively few high earners.

In contrast to England, Welsh public sector workers earn more than private sector workers of the same sex and age, and with the same education and experience.

Material living standards are generally lower in Wales than in the rest of the UK as a whole – median household net incomes are almost 6 per cent lower. Household net incomes in Wales are lower at every point of the income distribution, but the gap is larger at the top of the distribution than at the bottom.

Addressing the gaps in labour market performance would not only boost living standards, but also improve the Welsh Government’s finances: higher income tax revenues and lower spending on devolved benefits.

These are the key findings of the Nuffield Foundation-funded IFS briefing.

Jed Michael, a Research Economist at the IFS and co-author of the report said:

“The Welsh Government and Senedd have made improving living standards and reducing child poverty key goals enshrined in law as part of the Wellbeing of Future Generations Act. Improving productivity, earnings and employment will be key to meeting these goals – not least because under current devolution arrangements, the Welsh Government has limited control over benefits, which are generally the most direct way to boost the income of low-income households.”

Commenting, Welsh Conservative Shadow Cabinet Secretary for the Economy, Samuel Kurtz MS said:

“After 27 years of Labour, propped up by Plaid Cymru, Wales is falling behind.

“This report confirms what people across Wales already feel; fewer people in work, lower wages, and living standards lagging behind the rest of the UK.

“The Welsh Conservatives have a clear and credible plan to get Wales working and boost our economy by cutting taxes, backing businesses, and creating the conditions for higher wages and more jobs.”