Part of the debate – in the Senedd at 3:33 pm on 18 January 2022.
Thank you for the series of questions. On your starting point, I believe there is a strong and progressive case to be made for the future of the union, but it won't be made by the sort of attempts to centralise and hijack powers and money away from devolved national Governments that people have voted for in more than one referenda in Wales, Scotland and elsewhere. The Member may of course disagree on that particular point.
In terms of the challenges you mentioned about young people, on the young person's guarantee, it's deliberately designed to try to ensure that young people do have a future they can plan for in both rural and urban Wales. So, we're looking at how the apprenticeships work, but also the advice and support we're looking to wrap around young people to make sure they get into the world of work in a meaningful way in the future. And it's why the ability to invest in skills and progression are so very important. So, the issue about levelling up funding or replacing EU funding isn't simply a dry academic debate or political rock throwing between different parties; it really matters about our ability to deliver on our objectives. And I'd say, actually, all parties within the Senedd would agree we do want to provide greater investment into skills for the future, to make sure our young people have real choices to make within their local economies.
I'll be providing further updates on the work the young person's guarantee is doing, and I think we have a genuine opportunity to live up to the rhetoric and in making sure we don't see a lost generation here in Wales. And, of course, the challenges in the labour market are different to what we would have expected a couple of years ago, post pandemic. We haven't seen very high levels of unemployment. We're actually seeing quite a tight labour market, and in today's unemployment figures, the UK average unemployment is 4.1 per cent; it's 3.4 per cent in Wales. But we do still have a challenge with the economic inactivity in Wales being higher than the UK average, and we've seen that while some people have left the labour market altogether, one of the big challenges is that older workers who have left are unlikely to return. Now, that's a challenge in terms of experience. But it does mean, I think, there's an even greater imperative to invest in the workforce we do have, and the future workforce as well, alongside the points that you make, which are also in the economic mission update that I published in October, about the need to take account for a decline in the working-age population, and the fact we will need to be more productive if we're going to be able to have a strong, well-functioning economy for the future.
On your point about net zero and regional economic development, and the decarbonisation challenge, it's a challenge both for energy generation, but much more broadly for economic activity. And actually, I think the point you make about the difference between the north Wales economic framework and the growth deal that they've agreed, with a real focus on greener energy, which I think does a great deal of credit to all six local authorities in north Wales—the fact they've been able to work together. And I see we have a former north Wales leader in the virtual Chamber today. But it does real credit that six different authorities, six different leaderships—. They've all agreed on a broad vision for north Wales and their transparent potential for greater energy generation and economic benefit for communities across the north as a result. And that's one of our big challenges—it's to make sure we don't just produce greener energy, but we actually get the jobs dividend that should come with that. There's no guarantee we do that.
The mid Wales headline growth deal isn't quite as far as advanced as other deals around the country. And interestingly, Ellen ap Gwynn, in particular, was very interested in the potential for greater green energy investment and jobs return, but they know that they're still identifying a more thematic approach at this point—they don't have the portfolio of areas in the same level of detail that other growth deals do. And that's one of the things that we need to accept—in having power that we share with regions, and regions making lots of their own choices for them, they'll move at slightly different speeds in different places, they'll have slightly different priorities. But actually, I'm confident that we will see proper opportunities for green energy generation and regional economic development going hand in hand in mid Wales, just as in the rest of Wales. And it was actually part of the discussion we had when we signed the final growth deal documents. I hope that gives the Member some comfort that this isn't simply a broader approach, without detail being worked through it, but that will come at different speeds in different regions of Wales.
And finally, on your point about bills and the transition and the cost-of-living crisis, one of my big concerns is that we know that there could be real economic benefit in moving to a decarbonised, lower carbon economy in the future and our pathway to net zero. The challenge is the transition could knock over people in the interim. So, we're going to need to deal with the transition to get there in the net-zero plan that the Minister for Climate Change outlined, with a significant chapter on the industrial decarbonisation that needs to take place. And I do think we will ultimately be able to gain benefit from that. The challenge, of course, is that won't happen just because we say it will; we've got to have work between partners, including the private sector, as well as those people responsible for the broader vision.
And finally, finally, Deputy Llywydd, I'd just like to pass on my good wishes for this particular young person, Mr Fletcher, who is planning his future in Wales and his marriage ceremony for later in the year. Best wishes to you, and I can tell you all about my first joyful 11 years myself.