Ed Miliband meets Ford workers at the Bridgend engine plant The UK coalition government and the Labour opposition have brought their battle over the economy to Wales.Deputy Minister Nick Clegg was due to visit a recycling project that trains the long-term unemployed in Cardiff on Friday.
Labour leader Ed Miliband, at Ford in Bridgend, said the Welsh government's hands were "tied" by Westminster.
It came in the wake of announcements of rising unemployment in Wales and the Bank of England's growth forecast cut.
Both the UK government in Westminster and the Labour Welsh government in Cardiff have faced attacks from critics for not doing enough to reinvigorate an ailing economy.
Official figures on Wednesday showed unemployment in Wales had reached its highest level since comparable records began in 1992.
On the same day, the Governor of the Bank of England Sir Mervyn King said the outlook for the UK had worsened and the economy could stagnate until the middle of next year.
Mr Miliband has said that there is mounting evidence the UK government's austerity policies are not working and that ministers should change course when the Chancellor delivers his autumn statement on 29 November.
He supported the actions of the Welsh government, pointing to funding to create 4,000 training opportunities for young people.
First Minister Carwyn Jones led a government that was "doing everything it can to get our economy moving."
'Absolute confidence'"But he's being held back," said Mr Miliband.
"His hands are tied by a government in Westminster that's making all kinds of decisions about our economy which I think are the wrong decisions."
Labour agrees that the deficit needs to be reduced but the government can't get the deficit down until Britain gets back to work, said Mr Miliband.
Action on the economy has been a sticking point in Labour's talks with opposition parties as it tries to get its budget through the assembly.
Mr Miliband said it was up to Carwyn Jones and his cabinet to decide whether they strike a deal with Plaid Cymru or the Liberal Democrats.
"I have absolute confidence that Carwyn will make the right decision by the people of Wales."
Mr Jones, who was also meeting workers at Ford's engine plant, said the Welsh government was doing what it could to stimulate growth.
He hailed an announcement about funding worth £55m to help small businesses and said there would be another announcement about capital spending next week.
"It's very important that the UK government do the same thing [as us] and they are not at the moment," he said.
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