MS highlights concerns from local firms as Wales employment figures lag behind UK

BUSINESSES in Pembrokeshire are feeling increasingly squeezed by rising costs and a challenging economic climate, according to feedback gathered at recent engagement events alongside the latest labour market statistics for Wales.

New figures show employment in Wales has risen slightly to 71.8%, but remains the lowest rate in the UK, where employment stands at around 75%. Economic inactivity has also increased from 24.5% to 24.8%, the highest level in Great Britain, while UK unemployment has reached a near five-year high amid slowing wage growth.

Commenting on both the statistics and the experiences shared by business owners across the county, Samuel Kurtz MS, Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, said many local firms were struggling under the combined pressure of higher taxes and operating costs.

“Behind these statistics are real businesses and real livelihoods here in Pembrokeshire,” he said. “Whether it was at the recent Pembrokeshire business rates online forum or the follow-up business surgery, I heard first-hand from entrepreneurs who feel squeezed, not supported by the status quo.”

He added: “When Wales has the lowest employment rate in the UK and the highest economic inactivity, while businesses here in Pembrokeshire say they are being squeezed from every direction, that should be a wake-up call to both governments.”

At the events, business owners from sectors including tourism, hospitality, retail and manufacturing raised concerns about rising business rates, energy bills and the cumulative impact of tax changes from both Cardiff and Westminster. Many reported scaling back plans to hire, invest or expand because of financial pressures, with some facing decisions about whether they could continue operating.

Examples shared included a tourism operator reporting holiday booking cancellations and staffing challenges as households tighten spending, a café owner in the county town considering shorter opening hours after sharp increases in energy and staffing costs, and a manufacturing firm warning that competitiveness was being undermined by high rates and regulatory burdens.

“Labour and Plaid Cymru are failing to get a grip on the economy in Wales,” Mr Kurtz said. “Their stitch-up budget in Cardiff Bay, alongside tax rises from Westminster, have piled pressure onto employers who are already battling higher costs just to stay afloat.”

Despite the challenges, economists point out that Wales’ labour market trends are influenced by a range of factors beyond government policy alone, including long-term health conditions, demographic changes and the rural nature of much of the Welsh economy, all of which contribute to higher levels of economic inactivity compared with other parts of the UK.

A Welsh Government spokesperson said supporting businesses and jobs remained a priority, highlighting measures such as business rates relief, economic development funding and targeted support programmes.

They said: “Businesses across Wales, like those elsewhere in the UK, are facing pressures from global economic conditions, inflation and higher borrowing costs. We continue to provide significant support to help firms grow, create jobs and invest in their communities.”

Mr Kurtz said the Welsh Conservatives were proposing an alternative approach to support job creation and restore business confidence.

“We are putting forward a bold, fully costed tax-cutting agenda to kickstart the economy, including abolishing stamp duty and cutting business rates, to undo Labour and Plaid’s economic damage and get Wales working again,” he said.

“Pembrokeshire has enormous potential, from our energy sector to tourism and food production, but businesses need a government that backs enterprise rather than burdens it. I will continue to stand up for local employers who feel ignored and squeezed by rising costs.”

Key figures from hospitality, tourism and culture to headline major county event

THE VISIT Pembrokeshire Tourism Summit will return on Wednesday, Marcn 26, bringing together leading voices from across the visitor economy for the county’s flagship industry event.

Hosted once again at Folly Farm, the annual summit is open to anyone involved in — or with an interest in — tourism in Pembrokeshire. This year’s theme, Shaping the Future Together: Sustainable Growth for Pembrokeshire, will focus on collaboration, innovation and long-term development across the sector.

Organisers say the event is the largest in Visit Pembrokeshire’s calendar, attracting tourism professionals, business owners, strategic partners and representatives from the public and third sectors.

The keynote speaker will be Kate Nicholls OBE, Chair and former Chief Executive of UKHospitality, widely regarded as one of the UK’s most influential advocates for the hospitality and tourism industries. She has played a central role in shaping national policy and championing the sector’s contribution to local economies.

Jason Thomas, Director of Visit Wales, will provide an update on national tourism priorities, while John Davies, Chair of the Executive Committee for the 2026 National Eisteddfod, will also address delegates. A former leader of Pembrokeshire County Council, Mr Davies brings extensive experience of both local government and national organisations.

Emma Thornton, Chief Executive of Visit Pembrokeshire, will open the summit by outlining the organisation’s ten-year vision for the Pembrokeshire visitor economy.

She said: “The Visit Pembrokeshire 2026 Tourism Summit will be a day to unite our industry, strengthen our voice, and shape the future of tourism in our county. Attendees will have the opportunity to make new connections, share innovation and best practice, and above all champion our visitor economy.

“Be in the room. Be part of the conversation. Be part of the future.”

Tickets for the summit are available via Eventbrite.

Visit Pembrokeshire is the county’s official Destination Management Organisation (DMO), operating as a business-led public-private partnership. The organisation provides tourism leadership and advocacy, destination marketing, campaign delivery, business support, and research and intelligence.

It also coordinates delivery of Pembrokeshire’s 2024–2028 Destination Management Plan, a shared strategy aimed at growing tourism sustainably for the benefit of communities and businesses.

PEMBROKESHIRE-BASED micro-distillery, Still Wild, will bring its award winning spirits to the heart of London as part of a special food and drink showcase at the iconic Spitalfields Market over St David’s Day weekend.

Taking place on Saturday 28th February and Sunday 1st March, and set within one of London’s most historic food destinations, the market will feature more than a dozen Welsh food and drink producers. The event will celebrate Wales’ position as a modern food nation, renowned for producing world-class food and drink.

Still Wild, which is known for its selection of wild botanical infused vermouth, gins, negronis, aperitif, nocino and vodkas will feature among the curated selection of producers. The Kilgetty based micro distillery launched Wales’ first ever vermouth in 2020 and hand-forages local botanicals to develop products that capture the flavours of the Pembrokeshire coastline.

Using a cold vacuum distillation process Still Wild is able preserve the delicate aromas of its botanicals and natural additives, a technique that has earned the brand international recognition, including a top global ranking at the World Vermouth Awards.

James Harrison-Allen of Still Wild said: “We’re really excited about having the opportunity to showcase our award winning range of vermouths and aperitivos to a London audience. We’ve had a loyal customer base in London via our website ever since we started, but I can’t wait to be pouring drinks in person. We’re really passionate about all the amazing wild Welsh botanicals that we forage, and I’m really eager to share them with everyone.”

Spitalfields Market, with its rich trading heritage and reputation for outstanding produce, provides the perfect backdrop to tell the story of Welsh food and drink to a London audience. Over the weekend, visitors will be invited to discover products that reflect the quality, character and ambition of contemporary Wales – from heritage-inspired favourites to innovative, modern brands.

Celebrating St David’s Day through food

The Spitalfields showcase forms part of a wider St David’s Day celebration being organised by Food & Drink Wales, the Welsh Government’s food division, which alongside its vital role in supporting and nurturing the sector, uses food and drink as a powerful way to express national identity, creativity and pride.

From artisan producers to established Welsh brands, the events will highlight how Wales’s food and drink scene is shaped by its landscape and brought to life by the people who make it.

Deputy First Minister with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies MS said: “St David’s Day is the perfect moment to celebrate the exceptional quality and creativity of Welsh food and drink producers. From award-winning charcuterie to innovative craft spirits, the businesses showcasing at Spitalfields represent the very best of what Wales has to offer.

“Our food and drink sector is built on strong foundations -protected geographical status, sustainable farming practices and generations of skilled production. But it’s also a sector that continues to evolve, with producers combining their heritage with fresh ideas and ambitious growth plans.

“Events like this are vital for connecting Welsh businesses with new markets and demonstrating to buyers across the UK that Wales is a modern food nation with products that can compete at the highest level.”