JOBS in hospitality for youths stuck in an “experience trap” could unlock a £2.3 billion economic boost, industry chiefs say.

Filling excess vacancies across hotels, and restaurants could see 33,600 youths move into work as part of solving the inactivity crisis.

Former health secretary Alan Milburn speaks to the media at the publication of the interim Milburn Report into Young People and Work.Alan Milburn is leading a review into youth inactivity that should report this Autumn Credit: PA Male hotel receptionist assisting a couple with suitcases at the front desk.Jobs for young people in hospitality such as pubs and hotels could provide £2.3 billion economic boost Credit: Getty – Contributor

A new report reveals that taking a so-called NEET – Not in Education, or Training – into a first job generates £152,000 in economic value.

The warning, in a report from Hilton and WPI Strategy, comes as government tsar Alan Milburn is due to publish a report this on the crisis.

Many young people struggle to get on the career ladder caught in an “experience trap”.

Four hundred thousand Neets overall are looking for work but one in four are said to have a lack of experience for a job – which costs the economy £14 billion a year.

Steve Cassidy, Senior Vice President, UK & Ireland, Hilton, said: “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.

“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 calling for a package of measures to be introduced including reducing employer National Insurance Contributions for hospitality.

They also want business rates’ reform to support the whole of hospitality, cutting back VAT on hospitality VAT to 10% in line with Europe and the ‘holiday tax’ scrapped.

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 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.”