While there have been improvements in some areas, the NHS is “still experiencing challenges with recruitment and retention, and a reliance on expensive agency staff to plug gaps in the workforce”, according to a report by the Auditor General for Wales.

The report said that “progress is being hampered by the absence of a national workforce plan, gaps in data and uncertainty over the future shape of healthcare services.”

The report highlights positive developments in key areas such as sickness absence management and reducing agency staff use, and also shows how the NHS workforce has continued to grow to help cope with increasing demand.

“However, significant challenges remain,” the report said.

“Staff turnover is still higher than it was prior to the pandemic, and staffing gaps continue to present real challenges for NHS Wales.

“There are over 5,600 vacancies in NHS Wales overall, with over 10 per cent of medical and dental posts currently vacant.

“Whilst expenditure on agency staff has reduced in the last year, it still cost the NHS £262 million in 2023-24.”

The report said that “the growth in the NHS workforce is welcome in the context of increasing demand, but this comes at a price.”

“NHS staffing costs have grown by 62 per cent since 2017-18 and stood at £5.23 billion in 2023-24,” the report said.

“In the current financial climate, there is a question whether continued growth at the same rate is sustainable.

“NHS Wales needs to adapt to the changing demand that it is facing, but it currently does not have a workforce plan linked to new and sustainable models of care.

“Workforce planning can’t be undertaken in isolation.

“The Welsh Government needs to work with senior leaders in NHS Wales and key partners to address these issues by developing a longer-term workforce plan.”

Addressing the need for a national workforce plan is “only part of the solution”, the report said, calling for “clear leadership to develop and implement it.”

The report also pointed out that workforce planning is made more difficult by a lack of clarity on the shape of future health and care services, by gaps in workforce data and by insufficient capacity and expertise within NHS bodies.

Auditor General Adrian Crompton said: “The NHS in Wales is continuing to face significant workforce challenges.

“The pandemic placed huge pressure on the NHS and that pressure has not gone away.

“Service demand remains high and is expected to grow further.

“This means the NHS and its partners must adapt the way they work and shape the workforce to meet these changing needs

“The report points to some positive developments but also for a need for important action in a number of areas, not least in the development of a stronger and more coherent national approach to workforce planning.

“I see this as crucial in developing a health and care workforce that is motivated, resilient and appropriately skilled to ensure it is delivering sustainable care of the highest possible quality.”