Hospitality Could Offer £2.3bn Economic Benefit As NEET “Experience Trap” Fuels UK’s Youth Unemployment Crisis

Britain is facing a ‘first jobs’ crisis which is costing billions of pounds a year, a new report has revealed.

Analysis by Hilton (NYSE: HLT) and WPI Economics estimates that moving one young NEET – someone not in education, employment or training – into a first job generates around £152,000 in economic value per year through higher output, tax revenues, lower benefits spending and reduced long-term scarring effects.

But with many struggling to take this first step into work due to a lack of prior experience, young people are being caught in an “experience trap” that is holding back growth and contributing to record levels of youth unemployment.

With recent Office for National Statistics (ONS) figures showing 400,000 NEETs are actively looking for work, and new Censuswide polling finding that one in four (24%) NEETs cite a lack of experience as their biggest barrier to getting a job, WPI analysis calculates that this “experience trap” could be costing Britain up to £14.4 billion a year in lost economic output.

At the same time, 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.

The research, which combines independent polling of 500 UK business leaders and 2,500 UK consumers with economic analysis, also points to a wider confidence and readiness gap among young people entering the labour market.  Polling found that only 28% of UK adults overall felt they left education well prepared for work. Sentiment was even weaker among young people at the start of their careers, falling to just 20% of 18 to24-year-olds.

The £2.3bn Hospitality Opportunity

Hospitality remains one of the few industries that offers young people without experience the opportunity to enter the workforce. The report estimates that filling hospitality’s excess vacancies with young NEETs could move around 33,600 people into work and generate £2.3bn of economic benefit each year.

To help unlock these critical first-job opportunities, Hilton and UKHospitality have called for a package of measures to be introduced, including reducing employer National Insurance Contributions for hospitality, delivering meaningful reforms to business rates to support the whole of hospitality, cutting hospitality VAT to 10% in line with Europe and scrapping the proposed holiday tax. UK hospitality leaders agree, with 85% saying higher tax burdens are limiting their ability to hire young or inexperienced workers. Eighty-one per cent (81%) of business leaders also said they would invest more – creating growth and new jobs  if the tax burden was reduced.

Reflecting concerns about the impact of rising costs on entry-level hiring, 81% of business leaders said that without access to entry-level jobs, young people struggle to build the experience employers expect. Eighty per cent (80%) also said weekend and part-time holiday work should be safeguarded, with 72% describing these roles as the most important gateway into employment.

In addition to first-job opportunities, hospitality also offers strong career growth prospects. Over the past year, 16–24-year-olds accounted for one in four promotions across Hilton’s UK business, showing how hospitality can help young people build long-term careers. Business leaders also see the benefit of a career in the sector, with 76% saying they would recommend the hospitality industry to someone starting their career today and 78% saying they would encourage their children or younger relatives to work in hospitality to learn essential life skills.

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.”

 Hilton expands action to tackle youth employment challenge

 In 2026, Hilton is supporting more than 4,000 young people through  work placements, careers events, mock interviews, workshops and hotel visits designed to develop skills, confidence and workplace experience.

Building on this work, Hilton and long-term partner Springboard, the UK’s leading hospitality employment charity, will launch a flagship event in early 2027 to help hundreds of young people discover hospitality careers. Bringing together young people, parents, teachers and careers advisers, the event will showcase routes into the sector and the opportunities they can unlock.

The event forms part of a wider ongoing programme – delivered with partners including Springboard, Aurora Foxes, DSA WorkFit and Only A Pavement Away – that helps more people gain the experience employers are looking for and opens routes into hospitality careers.

Chris Gamm, CEO of Springboard, said: “Through our work with young people, we see every day that ability and ambition are there, but confidence and opportunity can make all the difference. When someone is given the right support to build their skills and confidence, and an employer like Hilton is willing to give them that first opportunity, it can be the start of a career and a genuine change in their life.”