Politicians hit out at Rachel Reeves as they claim Jobs Tax is wreaking havoc as Welsh unemployment jumps for second quarter running
Rachel Reeves'Jobs Tax is 'wreaking havoc' as Welsh unemployment jumps for second quarter running, claim local politicians
The latest labour market statistics for Wales, covering September/October 2025, revealed that Wales’ unemployment rate has risen again to 6.1%, levels not seen since mid-2015 and a considerable rise of 1.4 percentage points on the quarter.
The Welsh Conservatives and Liberal Democrats have criticised Rachel Reeves’ budget and “Plaid and Labour’s stitch-up of a [budget] deal” that will result in “even more of the same economic decline”.
Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, Samuel Kurtz MS said: “Labour and Plaid’s unemployment crisis is deepening; the Welsh Government must get a grip.
"Rachel Reeves’ latest budget has hit business hard, with unemployment rising every month under Labour and yet again is higher than elsewhere here in Wales. Labour can't be trusted with the economy.
“The Welsh Conservatives are offering a bold and costed tax-cutting agenda to kickstart the economy, like the abolition of stamp duty and cuts to business rates, but Plaid and Labour’s stitch-up of a budget deal will mean even more of the same economic decline.”
Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP added: “Small businesses across Wales warned Rachel Reeves that hiking National Insurance would freeze recruitment and cost jobs. Those warnings were ignored and the consequences are now painfully clear.
“The Chancellor’s jobs tax is wreaking havoc on the Welsh economy, punishing employers for taking people on and leaving communities to pay the price.
“Rachel Reeves cannot keep pretending this is a coincidence. The writing is on the wall, her tax hike is strangling job creation and pushing Wales in the wrong direction.
“If the Labour Government wants to halt this downward spiral, it must urgently reverse the National Insurance increase and deliver real support for small businesses, including the Liberal Democrats’ call for an emergency VAT cut for hospitality and tourism.”
Unemployment in Wales remains the highest of all the nations of the UK. In October it rose to 5.7%, compared with a 5.1% UK figure.
Employment in Wales remained unchanged on the month at 70.8% in October and is the lowest of all of the nations of Britain (not NI). The UK rate was 74.9%.
