Rhodri Morgan has said he will ensure that Wales does not "fall into a low-skills low pay trap".

The pledge came as the first minister visited Newport to launch the results of a survey examining the future skills needs of Wales.

It found that skills levels are improving but warned of "major challenges" that would have to be tackled if Wales' GDP is to be boosted.

Morgan said that Wales was leading the way in gathering data on current and future skills needs.

"We will not allow Wales to fall into a low-skills low pay trap. There is a huge economic and social case for improving the country's skills and we are tackling it head on," he said.

"Our future prosperity is linked to our ability to produce high-value added products and services. For individuals, skills are a route to stable employment, higher wages, long-term prosperity and increased confidence and well-being."

Morgan said that action taken by his administration was already having a "very positive" impact.

"There has been an increase in the amount of training offered by employers and more people are interested in training than ever before," he said.

But he added that there was "more work to be done".

"There is a skills divide with the bulk of off-the-job training going to managers and other high skilled occupations and not very much to operatives and low skilled occupations.

"Across the range of skills, employers without exception anticipate that the need for higher level skills will rise in the future. We must make sure that our education and training systems are first class and geared up to meet the demands of employers."