Hospitality jobs could unlock £2.3 billion economic boost for UK youths
The UK hospitality sector has the potential to contribute £2.3 billion to the economy by providing jobs for young people currently in an “experience trap,” according to industry leaders, reports BritPanorama.
Industry experts suggest that filling existing vacancies across hotels, pubs, and restaurants could enable around 33,600 youths to enter the workforce, thereby addressing the country’s inactivity crisis.
A report from Hilton and WPI Strategy indicates that employing a young person who is not in education, employment, or training (NEET) can generate approximately £152,000 in economic value. This insight is crucial as Alan Milburn, the government’s jobs tsar, prepares to release a report this autumn focused on the challenges posed by youth inactivity.
Currently, there are around 400,000 NEET individuals seeking employment, with estimates suggesting that one in four lack the necessary experience to secure a job, costing the economy an estimated £14 billion annually. Many young people find themselves in this predicament, struggling to gain essential workplace experience due to the absence of job opportunities.
Steve Cassidy, Senior Vice President for Hilton in the UK and Ireland, stated, “Hospitality has always been one of the UK’s strongest routes into employment. We see firsthand how taking that first step into work can have a lasting impact on a young person’s confidence, skills, and future career prospects.”
He continued, “This research backs up just how valuable those first-job opportunities continue to be, not only for young people but for the wider economy. Yet too many young people are now caught in an experience trap, unable to get the experience employers are looking for because they cannot access that crucial first opportunity.”
Both Hilton and UKHospitality are advocating for a series of measures aimed at alleviating the employment crisis in hospitality. They suggest reducing employer National Insurance Contributions and reforming business rates, as well as lowering VAT on hospitality to 10% in line with European standards.
Allen Simpson, Chief Executive of UKHospitality, emphasized the urgency of the situation, asserting that the challenges facing young job seekers stem from the significant financial burdens imposed on the sector over the past two years. He remarked, “It’s costing the economy and taking away the first step on the career ladder for a whole generation.”
With a focus on bolstering the hospitality sector, industry leaders argue that supporting this vital industry not only creates job opportunities but also stimulates significant economic benefits, paving the way for thousands to return to work.
The necessity for a comprehensive approach to revitalize employment in hospitality has never been clearer, with many calling for swift governmental action to ensure that the sector can continue to thrive and offer crucial pathways into work for young people across the UK.
Moving forward, it is essential for policymakers to recognize the role of the hospitality sector as more than just a contributor to the economy; it serves as a critical launching pad for many young careers, offering invaluable early experiences in the workforce.
