Hospitality could deliver an estimated £2.3bn in annual economic benefit by helping more young people who are not in education, employment or training into their first jobs, according to new research from Hilton and WPI Economics.
The report estimates that filling hospitality’s excess vacancies with young people classified as NEET could move around 33,600 people into employment.
Analysis by WPI Economics estimates that moving one young NEET into a first job generates approximately £152,000 in economic value each year through increased output and tax revenues, reduced benefits spending and lower long-term effects associated with unemployment.
The research warns, however, that young people are increasingly becoming caught in an “experience trap”, where employers seek previous work experience while applicants struggle to secure the entry-level roles needed to gain it.
Recent Office for National Statistics figures cited in the report show around 400,000 NEETs are actively looking for work.
Polling commissioned for the research found 24% identified a lack of experience as their biggest barrier to securing a job.
Based on those figures, WPI Economics estimates the experience gap could be costing Britain as much as £14.4bn annually in lost economic output.
The research combined polling of 500 UK business leaders and 2,500 consumers with economic analysis.
It also identified concerns about how prepared young people feel when entering employment.
Only 28% of UK adults surveyed said they felt well prepared for work when leaving education, falling to 20% among respondents aged 18 to 24.
Hilton and UKHospitality argue that hospitality remains particularly well placed to provide first-job opportunities because many entry-level positions do not require previous sector experience.
However, they warned that higher energy, employment and taxation costs are restricting employers’ ability to create those positions.
Among hospitality business leaders surveyed, 85% said higher tax burdens were limiting their ability to recruit young or inexperienced workers.
A further 81% said they would increase investment and create new jobs if the tax burden on their businesses was reduced.
Hilton and UKHospitality are calling for measures including lower employer National Insurance Contributions for hospitality businesses, reforms to business rates, a reduction in hospitality VAT to 10% and the removal of the proposed holiday tax.
The research also found 81% of business leaders believe young people struggle to gain the experience employers expect without access to entry-level work.
Some 80% said weekend and part-time holiday jobs should be safeguarded, while 72% described these positions as an important gateway into employment.
Hilton said young employees also continue to progress within hospitality once they enter the sector, with 16 to 24-year-olds accounting for one in four promotions across its UK business during the past year.
Steve Cassidy, Senior Vice President, UK & Ireland at 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.
“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.”
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.
“The benefits of backing hospitality are clear. Billions in economic benefit, opportunities for young people and thousands of people back in work.”
The research also highlights the value employers place on experience gained through hospitality.
More than four in five business leaders surveyed said soft skills developed through hospitality are highly valued within their industry, while 84% considered them as important as formal qualifications.
Three quarters said they would be more likely to recruit someone with hospitality experience than an otherwise equally qualified applicant without it.
The rise of artificial intelligence is also influencing attitudes towards these skills, with 79% of business leaders saying soft skills are becoming more important.
Among 18 to 24-year-olds, 64% said they were concerned about AI’s impact on employment, while 52% believed hospitality was more resistant to AI than other entry-level careers.
Hilton is supporting more than 4,000 young people during 2026 through work placements, careers events, mock interviews, workshops and hotel visits.
The hotel group and employment charity Springboard are also planning a careers event in early 2027 bringing together young people, parents, teachers and careers advisers.
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.”