8. Statement by the Minister for Economy: The Young Person’s Guarantee

Part of the debate – in the Senedd at 5:27 pm on 16 November 2021.

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Photo of Vaughan Gething Vaughan Gething Labour 5:27, 16 November 2021

Thank you, and I recognise that the last decade has been more challenging than we'd want, both coming out of the global financial crash, and then measures that the UK chose to take at the time. And, to be fair, I know that the Member wasn't an enthusiastic supporter of the austerity that was introduced and the challenges, the very real challenges, that that provided, but, even during that time, within Wales, we have closed a number of gaps with the UK  on employment and on productivity as well. It's because we've been able to invest in skills here, and it's why the issue of former European funds is such a key point for us, because we've used a lot of that budget to invest in the skills of the current and the future workforce. And not being able to co-ordinate that on a national basis will make a real difference about what we're able to do alongside businesses and, indeed, for the workforce.

I don't think that goes into your point about the bakery that you didn't name, but I take on board your point about how we make it simple for people: simple for the people running a business, simple for the people who want options to join that business, and again how we help them. And it is entirely possible for small businesses to take on apprentices. A number already do, and do so successfully. And so I'd want to see more of that to make it easier, but to make sure the opportunities are real, whether in small, medium or large businesses. And I think that goes into the point made by Luke Fletcher as well about the FSB's call. And why on earth wouldn't the Federation of Small Businesses call for small businesses to be more involved? The challenge I have is making sure that there's a fair offer, one that engages businesses of all types who can and are keen to play their part in making the guarantee a success.

And I think, dealing broadly with your point about what is a meaningful offer for communities, what is a meaningful offer in different parts of Wales—and you mentioned some of the challenges in rural Wales that may be different to urban sectors in Wales, and yet we know that there are significant barriers to people in different parts of the city of Cardiff, Swansea or Newport in gaining opportunities, and so we are looking at not just those and not just about challenges in the language, but how we understand the individual barriers to engagement for individual young people. And that's why the support and the advice stage is so very important, to understand, for that person in the part of Wales in which they live, what are the barriers that face them for them to be able to get into work. Is its childcare? Is it the ability to physically get to a place where education, training or work is available? Is it that, actually, we need to do more to understand what we need to do to improve their skills base before they can practically enter the world of work?

So, the support phase is really important to be able to do that, and that may well look different if you live in Machynlleth compared to if you live in Johnstown, compared to if you live in Barry. All of those places will have a slightly different context to them; that's why I'm so very keen that we do get the advice and the guidance phase right. If we do that properly then I'm confident we'll have businesses that want to engage, we'll have education and training providers who are ready and want to engage, and to do more in this space, and I think we'll do the right thing by people right across the country.