One sector is calling for a change in the rules
Many young people are struggling to take a first step into work due to a lack of prior experience, ending up caught in an “experience trap”, according to analysis by Hilton and WPI Economics. Recent Office for National Statistics figures show 400,000 yiung people not in education, employment or training are actively looking for work, but a quiarter cite a lack of experience as their biggest barrier to getting a job.
Sectors such as hospitality that have traditionally provided a first job without the need for prior experience, are seeing vacancies fall as rising energy, tax and employment costs have reduced employers’ ability to create first job opportunities for young people. Hilton and UKHospitality have called for a package of measures to be introduced, including reducing employer National Insurance Contributions for hospitality, delivering reforms to business rates to support the hospitality, cutting hospitality VAT to 10% in line with Europe and scrapping the proposed holiday tax.
Steve Cassidy, Senior Vice President, UK & Ireland, Hilton, said: “Hospitality has always been one of the UK’s strongest routes into employment and 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. 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.
“Hospitality can play an important role in fixing this. At Hilton, we continue to open the door to work for thousands of young people, but our owner community and businesses across the sector also need the confidence to grow, invest and hire. With 85% of hospitality leaders saying higher tax burdens are limiting their ability to recruit young or inexperienced workers, government should look at ways to reduce the cost of employment. If we want businesses to invest in the next generation, we need policies that encourage employers to create more jobs and give young people the chance to prove what they can do.”
Allen Simpson, Chief Executive of UKHospitality, said: “The ‘experience trap’ thousands of young people are caught up in is the result of the last two years adding billions of costs onto critical employment sectors like hospitality.
“Hospitality is the sector of experience and opportunity, regardless of your background, qualifications or circumstances, but the jobs it creates and supports are being taxed out of existence. It’s costing the economy and taking away the first step on the career ladder for a whole generation.
“The benefits of backing hospitality are clear. Billions in economic benefit, opportunities for young people and thousands of people back in work. The new Prime Minister should continue to show his support for hospitality, reduce its tax burden and allow the sector to fulfil its potential to drive economic growth and create new jobs in every postcode.”
