The
Economy of Wales. In 2007, according to
ONSThe Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the Parliament of the United Kingdom.-Overview:...
provisional data, headline
gross value addedGross Value Added or GVA is a measure in economics of the value of goods and services produced in an area or sector of an economy.-Relationship to Gross Domestic Product:...
(GVA) in
WalesWales is a country that is part of the United Kingdom, bordered by England to its east, and the Atlantic Ocean and Irish Sea to its west. It is also an elective region of the European Union...
was £44,333m, making the Welsh economy the tenth largest of the UK's twelve regions (counting Wales, Scotland and Northern Ireland alongside the nine English Government Office Regions). The modern Welsh economy is dominated by the service sector. In 2000, services contributed 66% to GVA, the
manufacturingManufacturing is the use of machines, tools and labor to make things for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
sector contributed 32%, while
agricultureAgriculture is the production of food and goods through farming and forestry. Agriculture was the key development that led to the rise of human civilization, with the husbandry of domesticated animals and plants creating food surpluses that enabled the development of more densely populated and...
,
forestryForestry is the art and science of managing forests, tree plantations, and related natural resources. The main goal of forestry is to create and implement systems that allow forests to continue a sustainable continuation of environmental supplies and services...
and
fishingFishing is the activity of catching fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping....
contributed 1.5%.
As with the rest of the United Kingdom, the currency used in Wales is the
pound sterlingThe pound sterling , often simply called the pound, is the currency of the United Kingdom, its Crown dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands and British Antarctic Territory...
, represented by the symbol
£The pound sign is the symbol for the pound sterling—the currency of the United Kingdom . The same symbol is used for currencies of the same name in some other countries and territories; there are other countries whose currency is called "the pound", but that do not use the £ symbol.The symbol...
. The
Bank of EnglandThe Bank of England is, despite its name, the central bank of the whole of the United Kingdom and is the model on which most modern, large central banks have been based. It was established in 1694 to act as the English Government's banker, and to this day it still acts as the banker for the UK...
is the central bank, responsible for issuing currency, although banks in Scotland and Northern Ireland also have the right to issue their own banknotes. The
Royal MintThe Royal Mint of the United Kingdom is the body permitted to manufacture, or mint, coins in the United Kingdom. The Mint originated over 1,100 years ago, but has functioned since 1975 as a Trading Fund, operating in much the same way as a government-owned company...
, which issue the coinage circulated over the whole of the UK, have been based at a single site in
LlantrisantLlantrisant is a town in the county borough of Rhondda Cynon Taf, within the historic county boundaries of Glamorgan, Wales, lying on the River Ely and the Afon Clun. The town's name translates as The Parish of the Three Saints. The three saints in question are St Illtyd, St Gwynno and St Dyfodwg...
, south Wales since 1980, having been progressively transferring operations from their
Tower HillTower Hill is an elevated spot north-west of the Tower of London, just outside the limits of the City of London in the London Borough of Tower Hamlets...
, London site since 1968. Since
decimalisationIn the management of currencies, decimalisation is the process of converting from traditional denominations to a "decimal" system, usually with two units differing by a factor of one hundred....
, in 1971, at least one of the coins in UK circulation has depicted a Welsh design, e.g. the 1995 and 2000 one Pound coin (shown left). However, Wales is not represented on any of the coins currently being minted.
Economic output per head has been lower in Wales than in other parts of the UK (and most other parts of Western Europe) for a very long time - in 2002 it stood at 90% of the EU25 average and around 80% of the UK average. However, care is needed in interpreting these data, since regional GDP/GVA per head data in the UK does not take account of regional differences in the cost of living, which in Wales is estimated to be 93-94% of the UK average. Thus the gap in real living standards between Wales and more prosperous parts of the UK is not pronounced.
Tertiary
In recent years, the service sector in Wales has seen above average growth, however, in 2005 it still contributed a small share of GVA compared with most other regions of the UK. Wales does not have a favourable occupational structure, and a relatively high proportion of jobs are in
public administrationPublic administration can be broadly described as the development, implementation and study of branches of government policy. The pursuit of the public good by enhancing civil society, ensuring a well-run, fair, and effective public service are some of the goals of the field.Public administration...
,
healthNHS Wales is the publicly funded healthcare system of Wales. NHS Wales was originally formed as part of the public health system for England and Wales created by the National Health Service Act 1946 but powers over the NHS in Wales came under the Secretary of State for Wales in 1969...
and
educationEducation in Wales differs in certain respects from the systems used elsewhere in the United Kingdom.A significant number of students all over Wales are educated either wholly or largely through the medium of Welsh; lessons in the language are compulsory for all until the age of 16...
. Compared to more prosperous parts of the UK, Wales lacks high-value added service sector employment in sectors such as
finance Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock...
, business services and
research and developmentThe phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
. This is attributable in part to a comparative lack of
agglomeration effectsThe term economies of agglomeration is used in urban economics to describe the benefits that firms obtain when locating near each other. This concept relates to the idea of economies of scale and network effects...
, caused by the small size of towns and cities in Wales compared to some other UK regions and small countries.
With its mountainous landscape and numerous sandy beaches, Wales attracts significant
tourismWales is an emerging tourist destination, with 8,078,900 visitors to National Trust and Welsh Tourist Board destinations in 2002.In 2005 tourism in Wales contributed to the Economy of Wales supporting over 100,000 service-sector jobs, more than 8% of total employees in Wales...
. In 2002, nearly 13 million trips of one night or more were made in Wales, generating expenditure of £1.8 billion. 11.9 million of these trips were made by UK residents with 0.9 million coming from overseas. Cardiff is the most popular destination for visitors to Wales, with 11.7 million visitors in 2006.
Secondary
Wales has a diverse
manufacturingManufacturing is the use of machines, tools and labor to make things for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
sector.
Heavy industryHeavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...
, once a mainstay of the Welsh economy has largely been in decline over the past century but is still very apparent.
Metal oreAn ore is a type of rock that contains minerals such as gemstones or metals that can be extracted through mining and refined for use. Samples of ore in the form of exceptionally beautiful crystals, exotic layering visible when sectioned or polished or metallic presentations such as large nuggets or...
refining is a long established industry in Wales. As of 2007,
CorusCorus is a subsidiary of Tata Steel, part of India's Tata Group. It is the world's fifth largest steel producer, with headquarters in London, England....
has manufacturing facilities at
Port TalbotPort Talbot is an industrial town in south Wales, UK, with a population of 35,633 in 2001. Port Talbot is now a part of the unitary authority of Neath Port Talbot county borough.-History:...
,
LlanwernLlanwern is an electoral ward and community in the urban-rural fringe of the City of Newport, South Wales. Llanwern ward is bounded by the M4 and Langstone to the north, Ringland, Liswerry and the River Usk to the west, the River Severn to the south and the city boundary to the east...
,
NewportNewport is a city and unitary authority area in Wales. Standing on the banks of the River Usk, it is located about east of Cardiff, and is the largest urban area within the historic county boundaries of Monmouthshire and the preserved county of Gwent...
,
TrostreLlanelli , the largest town in the county of Carmarthenshire, Wales, sits on the Loughor estuary on the West Wales coast, approximately west-north-west of Swansea and south-east of the county town, Carmarthen. The town is famous for its proud rugby tradition and is a centre of tinplate production...
,
ShottonShotton is a placename with several meanings:* Shotton, Peterlee, a village in County Durham, in north-east England* Shotton, Sedgefield, a village in County Durham, in England* Shotton, Northumberland, England...
, Ammanford, Pontardulais,
TafarnaubachBlaenau Gwent is a county borough and parliamentary constituency in South Wales. It borders the unitary authority areas of Monmouthshire and Torfaen to the east, Caerphilly to the west and Powys to the north. Its main towns are Abertillery, Brynmawr, Ebbw Vale and Tredegar.-Government:The borough...
and
CaerphillyCaerphilly is a town in the county borough of Caerphilly, south Wales, located at the bottom of the Rhymney Valley, with a population of approximately 31,000. It is a commuter town of Cardiff and Newport. It is about 2-3 miles north of the Cardiff suburbs of Lisvane and Rhiwbina, separated by...
, although only the
Port Talbot SteelworksPort Talbot Steelworks is an integrated Corus steel production plant in Port Talbot, Wales capable of producing nearly 5 million tonnes of steel slab per annum. The majority of the slab is rolled on-site at Port Talbot and at the Newport Llanwern site to make a variety of steel strip products. The...
remains as a major integrated steelmaking plant. Nearly all the tinplate and much of the
aluminiumAluminium or aluminum is a silvery white and ductile member of the boron group of chemical elements. It has the symbol Al; its atomic number is 13. It is not soluble in water under normal circumstances....
produced in the UK are made in Welsh plants.
Milford HavenMilford Haven is a natural harbour in Pembrokeshire, West Wales.It is formed by the Pembroke River and the Daugleddau estuary, and winds west to the sea. As one of the deepest natural harbours in the world, it is a busy shipping channel, trafficked by ferries from Pembroke Dock to Ireland, oil...
has two
oil refineriesAn oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene and liquefied petroleum gas...
which represent around a fifth of United Kingdom capacity.
Wales is an important producer of automotive components: Ford has a major engine plant at
BridgendBridgend is a town in the County Borough of Bridgend in Wales. It is roughly equidistant between the cities of Cardiff and Swansea. The river crossed by the original bridge, which gave the town its name, is the River Ogmore but the River Ewenny also passes to the south of the town...
,
LinamarBased in Guelph, Ontario, Linamar Corporation is Canada's second largest automobile parts manufacturer after Magna International. Linamar manufactures and supplies automotive and industrial markets across the globe with numerous manufacturing centres across North America, Europe, and Asia.The...
has a transmission components plant at
Crymlyn BurrowsCrymlyn Burrows is an area of land in Wales, UK to the east of Swansea city centre, and south of Crymlyn Bog. It is bounded by Jersey Marine Beach to the south and the River Neath to the east...
and Borg Warner has a major components plant in
KenfigKenfig is a village and former borough in Bridgend, Wales.The borough contributed with other Glamorgan towns to sending a member of parliament to Westminster until the Reform Act of 1832...
, South Wales.
Timet has a plant in
WaunarlwyddWaunarlwydd is a village near Swansea, Wales, falling within the Cockett ward.A mostly residential area, the pronunciation of Waunarlwydd sounds like "Wine are Lloyd" in English. Despite its expanding size the village boasts a small community feel...
,
SwanseaSwansea is a coastal city and county in Wales. Swansea is in the historic county boundaries of Glamorgan. Situated on the sandy South West Wales coast, the county area includes the Gower peninsula and the Lliw uplands...
, which is one of the world's major suppliers of
titaniumTitanium is a chemical element with the symbol Ti and atomic number 22. Sometimes called the “space age metal”, it has a low density and is a strong, lustrous, corrosion-resistant transition metal with a silver color.Titanium can be alloyed with iron, aluminium, vanadium, molybdenum, among other...
for jet engine blades and medical applications.
During the 1980s and 1990s, a major growth sector in manufacturing was the
electronicsElectronics is a branch of science and technology that deals with the controlled flow of electrons. The ability to control electron flow is usually applied to information handling or device control. Electronics is distinct from electrical science and technology, which deals with the generation,...
industry with over 130 North American and 35 Japanese companies establishing operations in Wales. However, this is a characteristic of a 'branch factory' economy where routine production is located in one region while higher skill activities are located in another.
Primary
In 2003, agriculture contributed £418 million to Welsh GVA, or 1.1% (including subsidies). 1.6m hectares (around 77% of Wales' total land area) is used for agricultural production and an estimated 57,500 people are directly employed in the sector. Farming is dominated by beef, sheep and the
dairyA dairy is a facility for the extraction and processing of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. Typically it is a farm or section of a farm that is concerned with the production of milk, butter and...
sector, with the
arableArable relates to the growing of crops:*Arable farming or agronomy, the cultivation of field crops*Arable land, land upon which crops are cultivated. It is land suitable for producing crops....
sector accounting for 10% of agricultural output. Average farm size is 30-40 hectares, small by UK standards, and dominated by family-run enterprises.
Forest and woodland makes up 14% of the land area of Wales, and there are 4,000 jobs in
forest-based industriesForestry is the art and science of managing forests, tree plantations, and related natural resources. The main goal of forestry is to create and implement systems that allow forests to continue a sustainable continuation of environmental supplies and services...
.
The Welsh
fishing industryThe fishing industry includes any industry or activity concerned with taking, culturing, processing, preserving, storing, transporting, marketing or selling fish or fish products....
is the smallest in the UK with approximately 1,000 full-time fishermen and a further 400 working on a part-time basis. The minor role that the Welsh industry holds is largely due to its geographical isolation, weak distribution networks, and the demise of the Wales distant-water fleet from the 1960s onwards.
Gross Value Added
Gross Value Added (GVA)
| Year |
£ million |
£ per head |
Index of £ per head (UK=100) |
| 1989 |
19,445 |
6,810 |
85 |
| 1990 |
20,990 |
7,335 |
85 |
| 1991 |
21,724 |
7,561 |
84 |
| 1992 |
22,659 |
7,874 |
84 |
| 1993 |
23,697 |
8,218 |
83 |
| 1994 |
25,049 |
8,675 |
84 |
| 1995 |
26,388 |
9,135 |
84 |
| 1996 |
27,518 |
9,517 |
83 |
| 1997 |
28,672 |
9,904 |
81 |
| 1998 |
29,787 |
10,273 |
79 |
| 1999 |
30,736 |
10,596 |
79 |
| 2000 |
31,898 |
10,973 |
78 |
| 2001 |
33,525 |
11,520 |
78 |
| 2002 |
35,252 |
12,074 |
78 |
| 2003 |
37,262 |
12,712 |
78 |
| 2004 |
39,340 |
13,352 |
77 |
| 2005 |
40,711 |
13,784 |
77 |
| 2006 |
42,697 |
14,396 |
77 |
Employment, unemployment and economic activity
According to the
Welsh Assembly GovernmentThe Welsh Assembly Government was firstly an executive body of the National Assembly for Wales, consisting of the First Minister and his Cabinet from 1999 to 2007....
bulletin of economic statistics for January 2009, the Labour Force Survey estimates for the 3 months to November 2008 show that:
- The employment rate
The Organization for Economic Co-operation and Development defines the employment rate as the percentage of the working age population who are currently employed...
in Wales was 70.8 per cent, down from 72.4 per cent in the same period a year earlier. The UK average was 74.2 per cent.
- The ILO
The International Labour Organization is a specialized agency of the United Nations that deals with labour issues. Its headquarters are in Geneva, Switzerland. Its secretariat — the people who are employed by it throughout the world — is known as the International Labour Office...
unemployment rate in Wales was 6.8 per cent of the economically active, up from 5.1 per cent in the same period a year earlier. The UK average was 6.1 per cent.
- The rate of economic activity
Economic activity rate is the percentage of the population, both employed and unemployed, who constitutes the manpower supply of the labor market despite their current labor status....
in Wales was 76.2 per cent, down from 76.4 per cent in the same period a year earlier. The UK average was 79.2 per cent.
- The claimant count
In the United Kingdom Jobseeker's Allowance , colloquially known as The Dole, is a form of unemployment benefit that is paid by the government to people who are unemployed and seeking work. It is part of the social security benefits system and is meant to cover the cost of living expenses in...
rate in September 2008 for Wales was 4.2 per cent of the workforce, up 1.5 percentage points on December 2007. The UK average was 3.6 per cent.
For statistical purposes, the
Office for National StatisticsThe Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the Parliament of the United Kingdom.-Overview:...
divides Wales into 26
Travel to Work AreaA Travel to Work Area or TTWA is a statistical tool used by UK Government agencies and local authorities, especially by the Department for Work and Pensions and Job Centres, to indicate an area where the population would generally commute to a larger town, city or conurbation for the purposes of...
s, collections of wards for which "of the resident economically active population, at least 75% actually work in the area, and also, that of everyone working in the area, at least 75% actually live in the area". Some of these areas span the border with England.
Small and medium-sized enterprises made up over 99% of the 190,000 businesses in Wales in 2006, but accounted for less than 60% of employment.
Regional variations
Over recent years, Cardiff, the northern and southern coastal belts, and some rural parts of Wales have experienced the biggest increase in employment, while the
South Wales ValleysThe South Wales Valleys are a number of industrialised valleys in South Wales, stretching from eastern Carmarthenshire in the west to western Monmouthshire in the east and from the Heads of the Valleys in the north to the lower-lying, pastoral country of the Vale of Glamorgan and the coastal plain...
and other industrial towns have suffered. This pattern probably reflects a combination of the increasing importance of
quality of lifeThe term quality of life is used to evaluate the general well-being of individuals and societies. The term is used in a wide range of contexts, including the fields of international development, healthcare, and political science. Quality of life should not be confused with the concept of...
factors in location decisions; the greater role played by the largest conurbations as centres of service sector businesses; and the effects of skill-biased technical change on the demand for labour, disadvantaging 'skill poor' declining industrial districts.
Average earnings and employment vary considerably across Wales. Employment and earnings are generally higher in east Wales, especially in urban areas. In south west Wales and the Valleys, both employment and wages are generally lower, although earnings in
BridgendBridgend is a town in the County Borough of Bridgend in Wales. It is roughly equidistant between the cities of Cardiff and Swansea. The river crossed by the original bridge, which gave the town its name, is the River Ogmore but the River Ewenny also passes to the south of the town...
and
Neath Port TalbotNeath Port Talbot is a county borough and one of the unitary authority areas of Wales. Neath Port Talbot is the 8th most populous county in Wales and the third most populous county borough....
, which are still centres of skilled manufacturing employment, are relatively good. In north and north west Wales earnings are low but the employment rates are above the Welsh average.
A significant part of the earnings (and value-added per job) variations within Wales are due to structural factors such as economic mass and occupational mix rather than like-for-like lower pay or
productivityProductivity is a measure of output from a production process, per unit of input. For example, labor productivity is typically measured as a ratio of output per labor-hour, an input. Productivity may be conceived of as a metric of the technical or engineering efficiency of production. As such, the...
. Cardiff, with 324,800 people, benefits from its capital status, a hinterland in south east Wales and good connections to London, the Greater Bristol area and the
M4 corridorThe M4 corridor is the area adjacent to the M4 motorway. The area is served by the M4 Motorway and the Great Western Main Line, including its South Wales branch.- The Eastern End :...
. The city is the primary location for service sector activities in Wales, with 26 per cent of Welsh service sector output and 22 per cent of Welsh service sector employment, compared to 19 per cent of all employment in Wales. North east Wales benefits from proximity to
CheshireCheshire ; also known, archaically, as the County of Chester) is a ceremonial county in North West England. The traditional county town is the city of Chester, although Cheshire's largest town is Warrington. Other major towns include Congleton, Crewe, Ellesmere Port, Widnes, Runcorn, Macclesfield,...
,
Greater ManchesterGreater Manchester is a metropolitan county in North West England, with a population of 2.56 million. It encompasses one of the largest metropolitan areas in the United Kingdom and comprises ten metropolitan boroughs: Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford, Wigan, and...
and
MerseysideMerseyside is a metropolitan county in North West England, with a population of 1,365,900. Taking its name from the River Mersey, Merseyside came into existence as a metropolitan county in 1974, after the passage of the Local Government Act 1972, and the county consists of five metropolitan...
, and there is significant cross-border
commutingCommuting is regular travel between one's place of residence and place of work or full time study. Institutions that have few dormitories or near-campus student housing are called commuter schools in the United States....
. The Valleys and the western areas of Wales have less economic mass and are more distant from major economic centres. These are some of the poorest regions in Europe and qualify for Objective One funding.
Many parts of Wales suffered from the continuous decline in heavy industry over the 20th century - culminating in the virtual disappearance of coal-mining in the 1980s. The demise of 'smokestack' industries left a legacy of relatively high unemployment, and although unemployment has declined in recent years, rates in
West WalesWest Wales is the western area of Wales.Some definitions of West Wales include only Pembrokeshire, Ceredigion and Carmarthenshire, an area called "South West Wales" in the Nomenclature of Territorial Units for Statistics. Other definitions include Swansea and Neath Port Talbot, but exclude...
and the Valleys still tend to be higher than the Welsh average, and economic inactivity (a form of hidden unemployment) continues to be a major problem in these areas.
Merthyr TydfilMerthyr Tydfil is a town in Wales, with a population of about 30,000. Although once the largest town in Wales, it is now ranked as the 13th largest urban area in Wales. It also gives its name to a county borough, which has a population of around 55,000. It was formerly in the historic county of...
and
Neath Port TalbotNeath Port Talbot is a county borough and one of the unitary authority areas of Wales. Neath Port Talbot is the 8th most populous county in Wales and the third most populous county borough....
have some of the largest proportions of people in the UK not working due to long-term illness or disability, though in practice many individuals classified as "unable to work" through sickness are often actually low skilled workers incentivised to exit the labour market because of declining demand and the operation of the
benefits systemSocial security is primarily a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...
.
Property
In November 2008 the average price of a house in Wales was £126,181, a fall of 11.7% since the previous year. The average house price in England and Wales as a whole was £161,883. In August 2008, average house prices in Wales ranged from £109,000 in
Blaenau GwentBlaenau Gwent is a county borough and parliamentary constituency in South Wales. It borders the unitary authority areas of Monmouthshire and Torfaen to the east, Caerphilly to the west and Powys to the north. Its main towns are Abertillery, Brynmawr, Ebbw Vale and Tredegar.-Government:The borough...
to £238,000 in
MonmouthshireMonmouthshire is a county in south east Wales. The name derives from the historic county of Monmouthshire which covered a larger area.-Historic county:...
.
Transport
In 2001 Wales had of trunk roads and motorways. The
M4 motorwayThe M4 motorway is a motorway in Great Britain linking London with West Wales. It is part of the unsigned European route E30. Other major places directly accessible from M4 junctions are Reading, Swindon, Bristol, Newport, Cardiff and Swansea....
,
A449The A449 is a major road in the United Kingdom. It runs north from junction 24 of the M4 motorway at Newport in South Wales to Stafford in Staffordshire....
,
A465The A465 is a major road in south Wales. It is more commonly known as the Heads of the Valleys Road because it joins together the north ends of the South Wales Valleys. An Ordnance Survey Pathfinder Guide describes it as the unofficial border between rural and industrial South Wales.- The Route...
,
A48The A48 is a major trunk road in Great Britain. It runs from the A40 at Highnam west of Gloucester to the A40 at Carmarthen. Before the construction of the M4 motorway and the first Severn Bridge in the mid 1960s it was the principal route into South Wales. For most of its journey through Wales,...
,
A40The A40 is a major trunk road connecting London to Fishguard, Wales. It is 256 miles long.It is one of the few remaining of the "old" trunk routes not to have been superseded by a direct motorway link, though some parts, such as the southern section from London to Oxford are now better served by...
, and
A477The A477 road is a major route in the Welsh counties of Pembrokeshire and Carmarthenshire, connecting St Clears and Johnston. It includes a toll bridge, the Cleddau Bridge between Pembroke Dock and Neyland.-Route:From east to west it runs through:...
in the south, the
A55The A55, also known as the North Wales Expressway, is a major road in Britain. Its entire length is a dual carriageway primary route, with the exception of the point where it crosses the Britannia Bridge over the Menai Strait. All junctions are grade separated except for two roundabouts — one...
and
A483The A483 is a major road in the United Kingdom, running from Swansea in Wales to Chester in England.-Swansea:From the M4 motorway Junction 42, just east of Swansea, it travels west along the Fabian way towards Swansea where it turns to a northwesterly direction towards the M4 motorway junction 47...
plus border links in the north, form part of the
Trans-European Road NetworkThe Trans-European road network was defined by Council Decision 93/629/EEC of October 29, 1993, and is a project to improve the internal road infrastructure of the European Union...
.
Most major English cities have direct rail connections to Wales via Cardiff Central, Chester and Wolverhampton (the latter two being in England). The South Wales Coast to Swansea is served by the
South Wales Main LineThe South Wales Main Line is a branch of the Great Western Main Line in the UK. It diverges from the core London-Bristol line at Wootton Bassett near Swindon, first calling at Bristol Parkway, after which the line continues through the Severn Tunnel into South Wales.Arriva Trains Wales operates...
which passes under the Severn Estuary through the
Severn TunnelThe Severn Tunnel is a railway tunnel in the United Kingdom, linking South Gloucestershire in the west of England to Monmouthshire in south Wales under the estuary of the River Severn....
; the
West Wales LineThe West Wales Line is a railway line from Swansea through Carmarthenshire to Pembrokeshire, West Wales. It has three branches, to Fishguard, Milford Haven and Pembroke Dock....
connects it to the Pembrokeshire ferry ports. The main North-South railway line is the
Welsh Marches LineThe Welsh Marches Line is the railway line from Newport to Shrewsbury via Abergavenny, Hereford, Craven Arms, and then, either to Crewe and Manchester via Whitchurch or alternately via the Shrewsbury and Chester Line to Wrexham and Chester with services continuing to Holyhead...
between Newport and Shrewsbury enabling direct services between Holyhead and Cardiff. A
urban rail networkValleys & Cardiff Local Routes is the busy urban network of passenger suburban railway services radiating from Cardiff, Wales. It includes lines within the city itself, the Vale of Glamorgan and the South Wales Valleys....
, serving 81 stations, is focused on the capital, Cardiff. Mid and North Wales (other than the coast) are served by a limited number of branch lines some of which connect with
revived narrow gauge railwaysThe Great Little Trains of Wales is a joint marketing scheme formed in 1970 to promote some of the narrow gauge railways of Wales and encourage visitors to Wales. As well as marketing the railways, the scheme allows visitors to purchase a discount card, allowing reduced rates on all the lines.As of...
.
Wales has ten main commercial ports.
Milford HavenMilford Haven is a town in Pembrokeshire, Wales on the north side of the inlet of the same name...
is the fourth largest port in the UK in terms of tonnage and the busiest for oil products.
NewportNewport Docks is the collective name for a series of docks in the city of Newport, South Wales.-Background:Newport was a small fishing port and market town until the coming of the industrial age at the beginning of the 19th century...
is the busiest UK port for iron and steel and
Port TalbotThe port of Port Talbot is located on the River Afan estuary next to Port Talbot Steelworks in the industrial town of Port Talbot, Wales, UK. Owned and operated by Associated British Ports, the port of Port Talbot has the deepest berthing facilities in the Severn estuary and is one of only a few...
is the third busiest for ores.
Cardiff International AirportCardiff Airport is an international airport for Wales serving Cardiff and the rest of South, Mid and West Wales. Around 2 million passengers pass through the airport each year....
is the only Welsh airport offering international scheduled flights. In 2007
Anglesey AirportAnglesey Airport is an airport owned by the Isle of Anglesey County Council on land leased from Defence Estates. The airport is situated at Llanfair yn Neubwll on the Isle of Anglesey, Wales. The leased site is part of RAF Valley, an RAF station teaching RAF pilots using BAE Hawks...
became a public airport, offering scheduled flights twice a day to Cardiff only.
Telecommunications
On 28 November 2006, a trial of a new telecommunications network
technologyTechnology is a broad concept that deals with human as well as other animal species' usage and knowledge of tools and crafts, and how it affects a species' ability to control and adapt to its environment...
was rolled out in the village of
WickWick is a small village in the Vale of Glamorgan in Wales, situated about two miles from the coast. The closest towns are Llantwit Major, Cowbridge and Bridgend.- Amenities :...
in the
Vale of GlamorganThe Vale of Glamorgan is a county borough in Wales; an exceptionally rich agricultural area, it lies in in the southern part of Glamorgan, south Wales...
. The new network BT 21CN, will offer data transfer speeds of up to 24Mbit/s, offering Welsh
broadbandThe term broadband can have different meanings in different contexts. The term's meaning has undergone substantial shifts.-In telecommunication:...
customers a wider range of services, including high-speed video telephony,
video on demandVideo on Demand or Audio Video on Demand are systems which allow users to select and watch/listen to video or audio content on demand....
,
WiFiWIFI is a radio station broadcasting a Variety radio format. Licensed to Florence, New Jersey, USA. The station is currently operated by Florence Broadcasting Partners, LLC.This station was previously owned by Real Life Broadcasting...
access and corporate VPN access.
Utilities
The average annual production of electricity in Wales is some 3,800 MW. Average annual electricity consumption is just over half of the annual production making Wales a next exporter of electricity. Electricity generation encompasses a broad mix of technologies including Nuclear (e.g.
WylfaWylfa is a nuclear power station situated just west of Cemaes Bay on the island of Anglesey, north Wales. Its location on the coast provides an excellent cooling source for its operation...
), Coal (e.g.
AberthawAberthaw Power Station refers to a series of two coal-fired power stations situated on the coast of South Wales, near Barry in the Vale of Glamorgan. Although it shares its name with the village of Aberthaw, it is actually located on the waterfront of the nearby village of Gileston...
), Gas (e.g.
Baglan BayBaglan Bay power station is a 525MWe gas-fired power station situated on Baglan Moors just west of Port Talbot in Wales.-History:The power was built on the site of the former Isopropanol BP chemicals in September 2003, costing £300m. At the time of its development, it was considered the most...
), Wind (
Cefn CroesCefn Croes is wind farm in Ceredigion, Wales. It is located in the Cambrian Mountains, just south of the A44 road between Aberystwyth and Llangurig, in west Wales....
) and hydro-electricity (
DinorwigDinorwig power station is a 1800 MW pumped storage hydroelectric scheme, near Dinorwig, in the Pass of Llanberis on the edge of the Snowdonia national park in Gwynedd, north Wales...
).
Taxation and public spending
Fiscal and economic policyThe United Kingdom is a major developed capitalist economy. It is the world's sixth largest by nominal GDP and the seventh largest by purchasing power parity. It is the third largest economy in Europe after Germany's and France's in nominal terms, and the third largest after Germany's and Russia's...
are
reserved mattersIn the United Kingdom reserved matters, also referred to as reserved powers, are those subjects over which power to legislate is retained by Westminster, as stated by the Scotland Act 1998, Northern Ireland Act 1998 or Government of Wales Act 1998....
determined at
WestminsterThe Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body in the United Kingdom and British overseas territories. It alone has parliamentary sovereignty, conferring upon it ultimate power over all other political bodies in the UK and its territories...
. The think-tank Oxford Economics estimated that in 2006-07, tax revenues of £19.3bn were raised in Wales, compared to Government expenditure of £28.2bn - a fiscal gap of £9.1bn. In 2001-02, public expenditure per head in Wales was higher than most of the English regions, but lower than in Scotland or Northern Ireland.
Economic development
According to the Welsh Assembly Government's economic development strategy, the role of the
public sectorThe public sector is a part of the state that deals with the delivery of goods and services by and for the government, whether national, regional or local/municipal....
in the economy is to help create a stable and favourable business environment, promote skills and innovation (through for example apprenticeships and
Design WalesDesign Wales is an organisation based at the University of Wales Institute, Cardiff, which over the years has raised the profile and increased the use of design within the Wales’ economy. This to a great extent has been achieved by providing one to one design advise directly to Welsh companies and...
), address market failures and invest in economic
infrastructureInfrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function....
including transport and
information technologyInformation technology , as defined by the Information Technology Association of America , is "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." IT deals with the use of electronic...
. Aside from fiscal policy,
energyIn physics, energy is a scalar physical quantity that describes the amount of work that can be performed by a force, an attribute of objects and systems that is subject to a conservation law...
policy, employment law,
social securitySocial security is primarily a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...
and various other aspects of market regulation are reserved to the UK Government.
Public sector employment
The public sector is also an important employer in Wales. In the year ending 30 June 2008, 386,000 people (28.8% of the Welsh workforce) were employed in the public sector, with the highest number (49,000) in
CardiffCardiff is the capital, largest city and most populous county of Wales. The city is Wales' chief commercial centre, the base for many national cultural and sporting institutions, the Welsh national media, and the seat of the National Assembly for Wales. According to recent estimates, the...
and the highest percentage of the local workforce (35.4%) in
SwanseaSwansea is a coastal city and county in Wales. Swansea is in the historic county boundaries of Glamorgan. Situated on the sandy South West Wales coast, the county area includes the Gower peninsula and the Lliw uplands...
.
Controversies in economic policy
The decline in Welsh GDP per person (relative to the UK average) over recent years has prompted policy debate. There have been suggestions – for example, by
Plaid CymruPlaid Cymru is a political party in Wales. It advocates the establishment of an independent Welsh state within the European Union.Plaid Cymru was formed in 1925 and won its first seat in 1966...
– that Wales should attempt to emulate the Irish '
Celtic TigerCeltic Tiger is a term used to describe a period of rapid economic growth in Ireland between 1995-2007, coming to a dramatic halt by 2008, with a GDP contraction of 14% by 2010....
' model, particularly its low corporation tax rates, to stimulate investment and
growthEconomic growth is a term used to indicate the increase of total GDP. It is often measured as the rate of change of gross domestic product . Economic growth refers only to the quantity of goods and services produced; it says nothing about the way in which they are produced...
. However, economists such as
Nicholas CraftsNicholas F. R. Crafts is Professor of Economics and Economic History at the University of Warwick, a post he has held since 2005. Previously he was a Professor of Economic History at London School of Economics and Political Science between 1995-2005...
and John Bradley have argued that the low Irish corporation tax rate was only effective in the very specific
demographicDemography is the statistical study of all populations. It can be a very general science that can be applied to any kind of dynamic population, that is, one that changes over time or space...
and historical circumstances of Ireland in the late 1980s and 1990s, and that adopting such a policy in a very different economic context would not only require political
independenceWelsh independence is a political ideal advocated by some people in Wales that would see Wales secede from the United Kingdom and become an independent sovereign state. This ideology is promoted mainly by the Welsh nationalist party, Plaid Cymru.-History:...
, but could be relatively ineffective and/or create difficult policy choices between higher
personal taxesAn income tax is a tax levied on the income of individuals or business . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax,...
and lower public spending.
In a report for the
Institute of Welsh AffairsThe Institute of Welsh Affairs is an independent, membership-based think-tank based in the capital of Wales, Cardiff, owing no allegiance to any political or economic interest group...
in 2003, Phil Cooke of
Cardiff UniversityCardiff University is a leading university located in the Cathays Park area of Cardiff, Wales, United Kingdom. It received its Royal charter in 1883 and is a member of the Russell Group of Universities. The university is consistently recognised as providing the best university education in Wales...
argued that the
Assembly GovernmentThe Welsh Assembly Government was firstly an executive body of the National Assembly for Wales, consisting of the First Minister and his Cabinet from 1999 to 2007....
had responded to the loss of
productivityProductivity is a measure of output from a production process, per unit of input. For example, labor productivity is typically measured as a ratio of output per labor-hour, an input. Productivity may be conceived of as a metric of the technical or engineering efficiency of production. As such, the...
in manufacturing by substituting new jobs in the public sector, making Wales increasingly dependent on
fiscal transfersFiscal imbalance is the term used by governments to describe a monetary imbalance between the national government and smaller, subordinate governments, such as those of states or provinces....
from
WhitehallHer Majesty's Government is the government of the United Kingdom. Under the Constitution of the United Kingdom, executive authority notionally lies with the monarch but is exercised in practice by her ministers...
. Cooke alleged that a relatively 'weak'
devolutionDevolution is the statutory granting of powers from the central government of a Sovereign state to government at a subnational level, such as a regional, local, or state level...
settlement had prevented the Assembly from developing innovative economic policies, especially when compared to
ScotlandThe Scottish Government , legally the Scottish Executive, is the executive arm of the devolved government of Scotland. It was established in 1999 as the Scottish Executive, from the extant Scottish Office, and the term Scottish Executive remains its legal name under section 44 of the Scotland Act...
. However, critics including former
Welsh SecretaryThe Secretary of State for Wales is the head of the Wales Office within the United Kingdom cabinet. He is responsible for ensuring Welsh interests are taken into account by the government, representing the government within Wales and overseeing the passing of legislation which is only for Wales...
Ron Davies and John Lovering, another Cardiff academic, claimed that Cooke's argument that a more powerful Assembly was the
necessary preconditionIn logic, the words necessity and sufficiency refer to the implicational relationships between statements. The assertion that one statement is a necessary and sufficient condition of another means that the former statement is true if and only if the latter is true.* A necessary condition of a...
to more effective economic policies was a
non-sequiturNon sequitur , in formal logic, is an argument in which its conclusion does not follow from its premises. In a non sequitur, the conclusion can be either true or false, but the argument is fallacious because there is a disconnection between the premise and the conclusion. All formal fallacies...
.
Economic history
Until the middle of the 18th century economic development in Wales was restricted by its peripheral location, predominantly upland topography, poor communications and sparse population. Commerce was most advanced in the small coastal ports that had regular exchange with
BristolBristol is a city, unitary authority area and ceremonial county in South West England, west of London, and east of Cardiff.With an estimated population of 416,400 for the unitary authority in mid-2007, and a surrounding urban area with an estimated 561,500 residents, it is England's sixth, and...
or
LiverpoolLiverpool is a city and metropolitan borough of Merseyside, England, along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880...
; the other major sources of external trading contact were the
droversA drovers' road, drove or droveway is a route for driving livestock on foot from one place to another, such as to market or between summer and winter pasture...
, who drove cattle from
Mid WalesMid Wales is the name given to the area of Wales lying between North and South Wales. Like the other regions of Wales, it has no official status as a region and therefore has no precise boundaries. It borders England via the Welsh Marches to the east and the Irish Sea via Cardigan Bay to the west...
along Drovers roads for sale and slaughter in the
English MidlandsThe English Midlands, or the Midlands is the traditional name for the area comprising central England that broadly corresponds to the early medieval Kingdom of Mercia. It borders Southern England, Northern England, East Anglia and Wales. Its largest city is Birmingham, and it was an important...
and London's Smithfield Market from the 14th century onwards. The drovers were instrumental in establishing the first banks in Wales, such as "Banc Y Ddafad Ddu" in
AberystwythAberystwyth is a historic market town, administrative centre and holiday resort within Ceredigion, Wales. It is often colloquially known as Aber, and is located at the confluence of the rivers Ystwyth and Rheidol....
.
Industrial development from the mid 18th century was stimulated by the potential of Wales' rich mineral deposits, the arrival of English
entrepreneurAn entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. It is an ambitious leader who combines land, labor, and capital to often create and market new goods or services. ... The term is a loanword...
s and financiers, and changes in technology. The development of iron
smeltingSmelting is a form of extractive metallurgy; its main use is to produce a metal from its ore. This includes iron extraction from iron ore, and copper extraction and other base metals from their ores...
by
cokeCoke is the solid carbonaceous material derived from destructive distillation of low-ash, low-sulfur bituminous coal. Cokes from coal are grey, hard, and porous.-Production:Coke is usually produced from coal; the process is called coking....
made the
South Wales ValleysThe South Wales Valleys are a number of industrialised valleys in South Wales, stretching from eastern Carmarthenshire in the west to western Monmouthshire in the east and from the Heads of the Valleys in the north to the lower-lying, pastoral country of the Vale of Glamorgan and the coastal plain...
a natural industrial location during the
Industrial RevolutionThe Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, and transport had a profound effect on the socioeconomic and cultural conditions in the United Kingdom. The changes subsequently spread throughout Europe, North...
, and from the mid 18th century, increased demand for metals and coal was generated first by war, and later by the advent of steamships and railways.
The northern rim of the
South Wales CoalfieldThe South Wales Coalfield is a large region of south Wales that is rich with coal deposits.- The coalfield area :The South Wales Coalfield lies in parts of the unitary authorities of Carmarthenshire, Swansea, Neath Port Talbot, Bridgend, Rhondda Cynon Taf, Vale of Glamorgan, Merthyr Tydfil,...
, focused on Merthyr, became Britain's foremost iron-producing district in the second half of the century, while the south-western part of the coalfield, around
SwanseaSwansea is a coastal city and county in Wales. Swansea is in the historic county boundaries of Glamorgan. Situated on the sandy South West Wales coast, the county area includes the Gower peninsula and the Lliw uplands...
, emerged as an important centre of non-ferrous metal smelting and tinplate production. Metallurgical industries required ever increasing quantities of coal, which was initially largely mined for this purpose. However, sale-coal mining developed in earnest from the mid 19th century and this was to become the
signature industry of the regionMining in Wales provided a significant source of income to the economy of Wales throughout the nineteenth century and early twentieth century....
, transforming the economic and social landscape of the South Wales Valleys.
Although a much smaller industry than coal, the
slate industry in WalesThe slate industry in Wales began during the Roman period when slate was used to roof the fort at Segontium, now Caernarvon. The slate industry grew slowly until the early 18th century, then expanded rapidly until the late 19th century, at which time the most important slate producing areas were in...
became the world's largest supplier in the 19th century, and had an enduring impact on the landscape of
North WalesNorth Wales is the northernmost unofficial region of Wales, bordered to the south by Mid Wales and to the east by England.It comprises the island of Anglesey, the Llŷn peninsula and the Snowdonia mountain range, together with the catchments of the Rivers Conwy, Clwyd and Dee with the River Dyfi...
. At its height in the 1890s, there were dozens of
quarriesA quarry is a type of open-pit mine from which rock or minerals are extracted. Quarries are generally used for extracting building materials, such as dimension stone, construction aggregate, riprap, sand, and gravel...
employing around 15,000 men, although they suffered from the
boom and bustThe term boom and bust refers to a great buildup in the price of a particular commodity or, alternately, the localized rise in an economy, often based upon the value of a single commodity, followed by a downturn as the commodity price falls due to a change in economic circumstances or the collapse...
nature of the construction industry. As most of the workforce were drawn from rural, Welsh-speaking communities, slate quarrying was described by one historian as "the most Welsh of Welsh industries".
Despite explosive growth in the early 1900s, by the 1920s it was apparent that Wales was facing economic difficulties, largely because of its reliance on older
heavy industryHeavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...
rather the newer, growing
light industryLight industry is usually less capital intensive than heavy industry, and is more consumer-oriented than business-oriented...
sectors that were becoming established in the more prosperous parts of England. Even during a boom period at the start of the 20th century, Wales had a narrow economic base dependent on the labour intensive exploitation of natural resources. The Welsh
exportIn economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Export goods or services are provided to foreign consumers by domestic producers. Export is an important part of international trade...
economy collapsed during the inter-war recession, victim of increasing
protectionismProtectionism is the economic policy of restraining trade between states, through methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government regulations designed to discourage imports, and prevent foreign take-over of local markets and companies...
and the rise of new competitors overseas. As the global
terms of tradeIn international economics and international trade, terms of trade or TOT is the relative prices of a country's export to import. "Terms of trade" are sometimes used as a proxy for the relative social welfare of a country, but this heuristic is technically questionable and should be used with...
changed, unemployment in the South Wales Valleys soared to unprecedented levels during the
early 1930sThe Great Depression in the United Kingdom, also known as the Great Slump, was a period of national economic downturn in the 1930s, which had its origins in the global Great Depression...
(up to 59% in Merthyr and 76% in
PontypriddPontypridd is both a community and a principal town of Rhondda Cynon Taf, Wales and is situated 12 miles/19 km north of the Welsh capital city of Cardiff....
), despite the exodus of 400,000 people from the region between 1921 and 1939.
In the post-war era, the steel and tinplate industries consolidated on a smaller number of larger sites, such as the new works at Port Talbot and
LlanwernLlanwern is an electoral ward and community in the urban-rural fringe of the City of Newport, South Wales. Llanwern ward is bounded by the M4 and Langstone to the north, Ringland, Liswerry and the River Usk to the west, the River Severn to the south and the city boundary to the east...
. The
National Coal BoardThe National Coal Board was the Statutory Corporation created to run the nationalised coal mining industry in Britain. Set up under the Coal Industry Nationalisation Act 1946, it took over the mines on 'vesting day', 1 January 1947...
, created in 1947, tried to modernise the Welsh coal industry, but the number of pits in South Wales shrank from 115 in 1953, producing almost 21 million tons, to 34 in 1981, producing 7.7 million tons.
PembrokeshirePembrokeshire is a county in the southwest of Wales.-Geography:Pembrokeshire is a maritime county, bordered by the sea on three sides, by Ceredigion to the north east and by Carmarthenshire to the east...
and
Swansea BaySwansea Bay is a bay on the Bristol Channel on the South Wales coast. Places on the bay include Mumbles, Swansea and Port Talbot. The River Neath, River Tawe, River Afan and Blackpill stream flow into the bay....
became centres of the
petrochemicalPetrochemicals are chemical products made from raw materials of petroleum or other hydrocarbon origin. Although some of the chemical compounds that originate from petroleum may also be derived from coal and natural gas, petroleum is the major source...
industry, and new light industry was attracted to locations throughout Wales. Wales attracted an above average share of the
foreign direct investmentForeign direct investment in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. Its definition can be extended to include investments made to acquire lasting...
(FDI) into the UK from the 1970s onwards, but many of the new plants established by foreign firms were essentially 'branch factory' operations offering low-wage, low-skill employment opportunities.
One of the main trends in the post-war decades was the shift towards service sector employment, which accounted for 60% of jobs by the 1980s, many of them held by women. The concentration of official agencies in Cardiff increased the scope for bureaucratic employment in the public sector, while Government
regional policyRegional policy is the means by which governments and international organisations seek to reduce spatial disparities in economic well being. It sets the framework for regional planning.-Regional policy in the European Union:...
brought various national bodies to Wales: the
Royal MintThe Royal Mint of the United Kingdom is the body permitted to manufacture, or mint, coins in the United Kingdom. The Mint originated over 1,100 years ago, but has functioned since 1975 as a Trading Fund, operating in much the same way as a government-owned company...
moved to
LlantrisantLlantrisant is a town in the county borough of Rhondda Cynon Taf, within the historic county boundaries of Glamorgan, Wales, lying on the River Ely and the Afon Clun. The town's name translates as The Parish of the Three Saints. The three saints in question are St Illtyd, St Gwynno and St Dyfodwg...
,
Companies HouseCompanies House is the United Kingdom Registrar of Companies and is an Executive Agency of the United Kingdom Government Department for Business, Innovation and Skills...
to Cardiff, and the Driver and Vehicle Licensing Centre to Swansea. From the 1970s on, the steel industry contracted, with works at
Ebbw ValeEbbw Vale is a town at the head of the valley formed by the Ebbw Fawr tributary of the Ebbw River, south Wales. It is the largest town and the administrative centre of Blaenau Gwent county borough...
,
ShottonShotton is a town in Flintshire, north Wales, lying on the River Dee. It is continuous with the towns of Connah's Quay and Queensferry in what is called Deeside. At the 2001 Census Shotton had a population of 6,265.-History:...
and East Moors in Cardiff closing, and layoffs elsewhere. The
early 1980s recessionThe early 1980s recession was a severe recession in the United States which began in December of 1980 and ended in November 1982. It has been thought that the primary cause of the recession was a contractionary monetary policy established by the Federal Reserve System to control high inflation.In...
had a bigger impact in Wales than in other parts of the UK: between 1979 and 1982, Wales lost 130,000 jobs and the employment rate fell to 62%. Recovery started later in Wales, and structural changes left a legacy of high unemployment amongst older men, especially in the Valleys.
Today, Wales remains a lagging region within the wider United Kingdom economy. Over the long term, output and productivity growth in Wales has been broadly in line with the UK, and the developed world as a whole, although there are some unexplained gaps in particular service industries. What has marked Wales out is a low activity rate compared to other parts of the UK.
External links