Welsh jobless rate hits 6.1% as Conservatives blame Labour and Plaid budget deal

UNEMPLOYMENT in Wales has climbed to its highest level in ten years, according to the latest labour market figures.

Statistics covering September and October 2025 show the unemployment rate in Wales now stands at 6.1 per cent — the highest since mid-2015. The figure represents a rise of 1.4 percentage points compared with the previous quarter and remains higher than the UK average.

The increase comes amid continuing pressure on households and businesses, with higher costs, weaker growth and ongoing uncertainty affecting parts of the UK economy.

The figures have prompted criticism from the Welsh Conservatives, who have blamed both the UK Labour Government and the Welsh Government for what they describe as a deepening employment crisis in Wales.

Commenting on the data, Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, Samuel Kurtz MS said the Welsh Government needed to take urgent action.

“Labour and Plaid’s unemployment crisis is deepening; the Welsh Government must get a grip,” he said.

“Rachel Reeves’ latest budget has hit business hard, with unemployment rising every month under Labour and yet again higher here in Wales than elsewhere.

“Labour can’t be trusted with the economy. The Welsh Conservatives are offering a bold and costed tax-cutting agenda to kickstart growth, including the abolition of stamp duty and cuts to business rates, but Plaid and Labour’s stitch-up of a budget deal will mean more of the same economic decline.”

The Welsh Government has previously argued that employment figures are influenced by wider global and UK-wide economic challenges, as well as long-standing structural issues within the Welsh economy, including lower average wages and higher levels of economic inactivity.

Ministers have pointed to investment in skills, apprenticeships and infrastructure as part of efforts to support jobs and stimulate growth, while also noting that key economic levers remain reserved to Westminster.

Economists caution that quarterly unemployment figures can fluctuate and should be viewed alongside longer-term trends, including economic inactivity and underemployment.

However, with unemployment now at its highest level for a decade, pressure is increasing on both the UK and Welsh governments to demonstrate how their economic policies will deliver sustained job growth in Wales.

LOCAL businesses from across Pembrokeshire have warned that sharp increases in business rates could lead to redundancies and closures, following a public meeting held in Saundersfoot on Monday (Dec 15).

The meeting, held at the Hean Castle venue, brought together traders from retail, hospitality, professional services and the visitor economy to raise concerns about the impact of the latest business rates revaluation, which will take effect from April 2026.

Among those attending were Samuel Kurtz MS, Conservative Member of the Senedd for Carmarthen West and South Pembrokeshire, and Pembrokeshire County Councillor Jonathan Grimes, who represents Pembroke St Mary South and Monkton.

Businesses described sudden and significant increases in rateable values, with some reporting rises of more than 100%, despite no expansion in premises or improvement in trading conditions.

Evidence presented to the meeting highlighted concerns first identified by Pembrokeshire County Councillor Huw Murphy, who has been raising the issue locally and working with businesses, The Herald and S4C to bring the scale of the increases to public attention.

Cllr Murphy was unable to attend the Saundersfoot meeting, but details were provided on his behalf by Lee Bridges, drawing on information from businesses in the Newport & District Chamber of Trade area and Dinas Cross.

Figures relating to twenty local businesses showed that eighteen are facing increases in their rateable values, with one business hit by a 140% rise from April 2026. The average increase across the group was 36%, pushing the combined rateable value from £499,000 to £679,000 — an additional £180,000 burden due to take effect within four months.

One affected business has already warned that staff redundancies will be “unavoidable” if the increases go ahead.

Attendees criticised the Welsh Government’s transitional relief arrangements, describing them as inadequate and warning that they fall short of the support currently available to parts of the tourism and hospitality sector.

Tourism and hospitality account for an estimated 23% of Pembrokeshire’s economy, and those present warned that unchecked increases could have a serious impact on employment in coastal communities dependent on visitor trade.

The 2026 revaluation is based on rental values from April 2024 and has sparked concern across the county, with reports elsewhere in Pembrokeshire of increases of up to 400%.

Following the meeting, Mr Kurtz confirmed that he has written to the Cabinet Secretary for Finance and Welsh Language, Mark Drakeford MS, warning that current relief measures are insufficient and risk “pushing otherwise viable businesses over a cliff edge”.

He said businesses are already making decisions to close as a direct result of the projected increases and called for urgent action to protect jobs and local economies.

Businesses are being urged to check their new rateable values on the Valuation Office Agency website and to seek advice or contact their local representatives if they believe the figures are inaccurate or unsustainable.

Image caption:

Business rates meeting: Traders gather in Saundersfoot to raise concerns over impending increases, with Samuel Kurtz MS addressing attendees (Pic: Sam Kurtz MS)

FORMAL plans to turn Tenby’s former Poundland and Royal Playhouse cinema to a retro computer gaming lounge have been submitted to the national park.

Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby’s branch on White Lion Street.

In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a change of use of the former Gatehouse (Playhouse) Cinema, most recently used as a Poundland store to a retro gaming lounge.

This follows a recently submitted application for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former cinema, ahead of the wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front façade.

A supporting statement for the change of use scheme through agent Asbri Planning Ltd says: “The proposed retro gaming lounge will be inviting to all ages, including families, groups and individuals with no age restriction. The applicant has several similar premises across other parts of the UK and operates under a successful business model.

“This includes a fee being payable to enter the premises which thereby grants access to unlimited game time to all consoles/arcade machines. There will be no slot or coin-based reward games, so the proposal would not be considered/classed as gambling. The site will provide snacks and drinks (including alcohol) which will be canned/bottled drinks.

“The sale of such drinks would be ancillary to the overall function of the premises, and a separate alcohol licence will be submitted, accordingly.”

It adds: “The development would provide a much-welcomed addition to White Lion Rd which will improve the vitality and viability of the immediate area by promoting greater levels of footfall within the area and introduce greater variety to the shopping frontage at this location.”

It proposes opening hours of 10-10, Sunday to Thursday, and to 11pm on Fridays and Saturdays.

The application, and the related signage scheme, will be considered by park planners at a later date.

Prior to being a Poundland, the site was the Royal Playhouse, which had its final curtain in early 2011 after running for nearly a century.

The cinema had been doing poor business after the opening of a multiplex in Carmarthen; in late 2010 the opening night of the-then latest Harry Potter blockbuster only attracted an audience of 12 people.