Robert Lloyd Griffiths, Director of the Institute of Directors in Wales, comments:
“Another week, another statistic, and following the disappointment of last week’s GVA figures, this represents happier news at this time of year.
“This demonstrates to me that we must be considered in our analysis and study statistics collectively, rather than jump to conclusions based on one set of figures based in isolation.
“That said, this is good news. It is obviously very encouraging that employment in Wales has increased by 42,000 over the last quarter and has outperformed every other part of the UK. Long may that continue. The facts are impressive, and, given the turbulence which is affecting many parts of the world, are worth repeating. In nearly every aspect, the labour market is tightening. In addition to recording the highest increase in employment rate, Wales has seen the largest decrease in claimant count, which is very encouraging.
“All of the statistics indicate we are closing in on full employment.
“What this means for wages and inflation over the next 12 months, however, is less clear. In theory, a tightening labour market should mean wage rises. This is the trend we saw throughout 2015. But wage growth has outpaced productivity for much of this year, and in the last few months pay increases have trailed off.
“All in all, these figures are very encouraging for our members, who have worked relentlessly over the last few years to play their own part in contributing to improvements within the Welsh workforce and ultimately, the revival of Wales’ economy.”