Unlocking Wales’ Skills Potential: Gen Z Ready to Drive Growth, Employers Urged to Act

A new report from The Open University has highlighted a significant opportunity for Welsh businesses: a motivated, digitally savvy Gen Z workforce that is eager to contribute — and ready to be trained.

The Business Barometer 2025: Skills for today and tomorrow surveyed 139 Welsh employers and 80 Gen Z adults under 25. While over half (58%) of organisations in Wales are currently experiencing skills shortages — the highest in the UK — the findings show that young people are already aligning their ambitions with areas of high demand.

Key insights from the report include:

• 73% of Welsh Gen Z respondents are considering careers based on where skills are most needed
• 66% would stay longer with employers offering training and development
• 58% are already engaged or interested in working with AI

Yet currently, only 31% of Welsh businesses have specific strategies in place to recruit, retain, or train under-25s — signalling an untapped potential to close the skills gap and build a resilient workforce for the future.

“There’s a real opportunity here. Welsh employers can take the lead by building structured skills plans, working with education providers, and investing in flexible training. The organisations that prioritise learning at every level will be the ones that thrive.”
– Dr Scott McKenzie, Assistant Director, Learning, Skills and Innovation at The Open University in Wales

“Young people are ready to contribute. They’re motivated, digitally capable and eager to grow — they just need clear pathways and committed support from employers.”
– Baroness Martha Lane Fox CBE, Chancellor at The Open University

The report also reflects Wales’ continued commitment to Equality, Diversity and Inclusion (ED&I), with 80% of employers considering it a priority. There remains room to expand support for underrepresented groups, creating broader access to opportunities and strengthening the talent pipeline.

Challenges such as economic uncertainty, rising employment costs and AI adoption continue to impact businesses. But with only 36% of employers currently having a formal skills plan in place, the report highlights a clear path forward: proactive, inclusive investment in skills development.

To explore how employers can build future-ready teams, view the full Business Barometer 2025 report.

Real-world case studies from Welsh businesses that are already making progress are available via the OU Wales Success Stories.