The UK’s hospitality sector has issued a stark warning over declining job opportunities for young people, following the publication of the Government’s interim report on young people and work.
The report highlights ongoing challenges in youth employment, including barriers to entry and the need for improved pathways into work. However, industry leaders argue that rising employment costs are undermining efforts to bring more young people into the workforce.
Responding to the findings, Allen Simpson, Chief Executive of UKHospitality, said: “This interim report is clear sighted analysis of how significantly increasing employment costs directly reduces job opportunities, particularly for young people.
“The rapid loss of around 100,000 hospitality jobs after the 2024 Budget and the increase to employer NICs was the canary in the coal mine and should have been recognised as such by the Government.
“The solution is to reduce the cost of employment for hospitality businesses. As the biggest youth employer and driver of social mobility, thousands of job opportunities can be unlocked as a result. The Government needs to make it economically beneficial to employ young people once again.
“As Alan Milburn has said, there needs to be a shift towards getting more people work ready. We agree wholeheartedly, and already have in place supported pathways into work, like the Hospitality Skills Passport, which directly helps people who are out of work into hospitality jobs.
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“Utilising this kind of pre-employment training is critical, as well as delivering reform of the Apprenticeship Levy to allow employers to more effectively use their levy funds to support this work.”
UKHospitality argues that the sector, long recognised as one of the UK’s largest employers of young people, is uniquely positioned to support social mobility and provide accessible entry-level roles. However, the organisation warns that without targeted intervention—particularly around employer costs and skills investment—these opportunities will continue to diminish.
The Government’s interim report also calls for stronger alignment between education, training, and employer needs, reinforcing the importance of initiatives such as pre-employment programmes and apprenticeships. Industry leaders say that reforming existing mechanisms, including the Apprenticeship Levy, will be key to ensuring businesses can play a full role in tackling youth unemployment.
