Adult learning, upskilling and re-skilling are key to forward thinking in a diverse economy. We all recognise the importance of providing people with the skills required by employers to gain good and sustainable jobs. It is a sad fact that the Welsh economy is facing serious skills shortages. Like other parts of the United Kingdom, the Welsh economy experienced a number of inefficiencies and skill mismatches in the workforce. The most recent employer skills survey shows that, where the skills gaps in existing workforces remain broadly the same, there was an increase in vacancies that were hard to fill because of skills shortages. As a result, employers face skills shortages when trying to fill vacancies. with skills gaps in the current workforce and the under-utilisation of skills. 

This report aims to identify some of the problems facing Welsh businesses and proposes measures to tackle those problems. Training and upskilling people is not enough. We have to provide people with the types of skills training that businesses need in Wales. One of the problems identified in this report is the low-skills traps. This involves a cycle of limited demand for highly-skilled workers, leading to a low-skilled workforce. This, in turn, places limits on innovation and growth, continuing the limited demand for highly skilled workers. The challenge identified in this report is to stimulate higher level skill demand from employers. If we do not do this, we risk replacing the low-skills trap with inefficient skill surpluses. If we are to ensure the workforce supply needs of businesses, there has to be greater collaboration between Welsh Government, industry and educational institutions.

I regret that the Welsh Government has rejected a proposal to rename regional skills partnerships as 'regional skills advisory boards'. Rebranding the partnerships would, in my view, make their roles in the wider skills system clearer. Regional skills advisory boards would have a clear strategic outlook and remit, whilst improving employers' engagement, data gathering and analysis.  

The report calls on the Welsh Government to work with the higher education sector to unlock the vast research capability of our universities. We need greater engagement between universities and employers. One of the great benefits of degree apprenticeships is that they are employer driven and designed to meet skills needs. Universities in Wales are keen to develop a wide range of degree apprenticeships. However, it is not enough for the skills system in Wales to simply try and keep up with changes. It must anticipate change and even help shape it.

This is particularly true in the field of digital skills. They're having a huge impact as new technologies are adopted, but change is moving at a rapid pace. The digital sector is developing at such a rate that education providers find it difficult to keep up. We face a huge challenge in ensuring that digital training is up to date. This is vital if we are to meet the demand for workers with digital skills, particularly in specialist areas, such as cyber security.

Presiding Officer, the Welsh Government must meet the challenges and provide our workforce with the skills it needs to realise our full economic potential. I believe this report sets out the practical and effective measures required to enable the Welsh economy to grow and thrive. Thank you.