This chapter explores an important field of action in the devolved administrations, namely economic development, for which Wales and the other devolved territories are each responsible in policy terms. From 1997 New Labour pursued a strong sterling policy outside the eurozone. That, supported by globalisation effects as foreign and domestic firms outsourced and ‘offshored’ investments to cheap labour zones in Eastern Europe, North Africa, India and China, seriously eroded manufacturing employment. To these woes were added pressures for new industries caused by the end of the Internet stock market bubble from March 2000, and the ensuing global economic recession. So serious was the haemorrhaging by 2005, estimated at 1,000,000 manufacturing jobs in the UK since New Labour came to power in 1997, that concerns from industry and trade unions were voiced as that milestone was passed. This meant that, since devolution each administration has been struggling to modernise its economic governance mechanisms inherited from the preceding administratively but not politically devolved regimes. In this chapter, it is suggested that Wales, in particular, has perforce relied heavily on public sector job-generation as its main economic contribution to economic welfare in Wales. Comparisons with Scotland and Northern Ireland as well as regions of England demonstrate the case for 1998-2003. However, since 2003 it has become apparent that most job growth across the UK is accounted for by public sector employment growth and that what showed up first in Wales has become more widespread.