Boosting Productivity in Wales: Key Takeaways from the Wales Productivity Forum
By Julia Diniz
Last week, I attended an event run by the Wales Productivity Forum at Cardiff University as part of National Productivity Week. The event explored Wales’ ongoing productivity challenge and potential solutions, featuring keynotes from Professor Melanie Jones (Wales Productivity Forum), Dr Gregory Thwaites (Resolution Foundation), and Robert Lloyd OBE (ICAEW Wales), chaired by Professor Bart van Ark (The Productivity Institute).
Wales’ Productivity Challenge
The updated Wales Productivity Report highlighted that Wales continues to lag behind the UK average. However, other devolved nations have improved, suggesting Wales can too. Two key barriers stood out:
- Human Capital Investment – A high proportion of low-skilled workers limits business innovation and employability.
- Supportive Business Environment – SMEs drive Wales’ economy but struggle with finance, innovation, and productivity strategies.
Key Insights
Gregory Thwaites emphasised business dynamism—moving resources to more productive firms—but Wales faces unique challenges:
- Skills and Health Barriers – A high proportion of low-skilled adults and economic inactivity due to illness hinder transitions into high-productivity sectors.
- Labour Market Mismatch – Low-productivity industries dominate rural Wales, providing crucial employment but needing long-term strategies for sustainable growth.
Future Research & Collaboration
The discussions underscored the need for tailored approaches, deeper research into skills-health links, and SME productivity dynamics. Crucially, collaboration between governments, businesses, and workers will be essential to driving productivity growth. Engaging workers as innovation drivers and exploring initiatives like a productivity commission could play a key role in Wales’ economic future.
Find out more on the Wales Productivity Forum page.
A recording of the event is available to watch on YouTube.
