Open University Business Barometer Reveals Gen Z Poised to Drive Growth in Wales

Open University Business Barometer Reveals Gen Z Poised to Drive Growth in Wales

A recent report from The Open University highlights a promising future for the Welsh workforce, revealing that Gen Z is eager to contribute to economic growth and equipped with the motivation to learn — but employers must take action to unlock this potential.

The Business Barometer: Skills for today and tomorrow – how employers can plan for future skills surveyed over 2,000 UK organisation leaders and 1,000 Gen Z adults. In Wales, 139 employers and 80 Gen Z respondents (under 25) took part.

While 58% of Welsh organisations are currently experiencing a skills shortage — the highest across the UK — the report finds that young people are ready and willing to meet these challenges:

• 73% of Gen Z are considering careers based on where skills are most needed.
• 66% would stay longer with employers offering training and development.
• 54% are actively factoring the skills gap into their career planning.

This reveals a generation poised to drive future growth — particularly in areas like digital, AI and sustainability. However, with only 31% of employers in Wales currently running initiatives to engage under-25s, many organisations may be missing a vital opportunity.

Dr Scott McKenzie, Assistant Director, Learning, Skills and Innovation at The Open University in Wales, said:
“The data is clear: there’s a mismatch between employer intentions and practical action. But there’s also a real opportunity here. Welsh employers can start by building structured skills plans, work with education providers, invest in flexible training, and open up opportunities to more diverse talent. The organisations who act now — who take learning seriously, at every level — will be the ones who will thrive in the years ahead.”

Baroness Martha Lane Fox CBE, Chancellor at The Open University, added:
“Employers have an incredible opportunity — and responsibility — to shape the future workforce. The talent is out there. Young people are motivated, they’re digitally savvy, and they want to contribute. But they need clear training pathways, practical support, and employers willing to invest.

While there are economic challenges at this moment for employers, the smartest organisations won’t just wait for skills to arrive — they’ll build them, inclusively and proactively, to fuel growth and resilience.”

The report also found:

• 20% of employers are not confident they can deliver AI strategies due to lack of talent, despite high Gen Z interest in the field.
• 80% of Welsh employers say ED&I is important to their organisation, and 42% believe it will grow in importance.
• Yet 25% have no initiatives to support underrepresented groups such as returners, career changers, or disabled workers.

Welsh employers also report tangible impacts of the skills shortage:

• 60% say it has increased workload for other staff.
• 43% cite reduced productivity.
• 37% have scaled back growth plans.
• Yet only 36% have formal skills plans in place.

Despite concerns that trained staff might leave, the data suggests investment in development could increase retention and support long-term business growth.

To learn more about how to close the skills gap and empower the next generation, visit The Open University’s Business Barometer page.

You can also explore inspiring Welsh case studies here: Wales-specific success stories.