Hospitality sector plays ‘critical role’ in tackling youth unemployment

The hospitality industry has been crucial in reducing youth unemployment across Europe, according to a new report by EY Claims.

The findings revealed that in 2010 alone, the hospitality sector had created €1 trillion (£839.2 billion) in output across the continent. This is equivalent to 8.1 per cent of the total economic output in the EU. Furthermore, the industry was able to contribute €126 billion to governmental treasuries in VAT, excise duties and employment taxes. In total, 16.6 million EU jobs were supported in the 12 months.

In the UK itself, the sector's output was around €146 billion and 2.7 million individuals were working in the industry.

The study has been supported by the British Beer & Pub Association (BBPA), whose chief executive Brigid Simmonds said: “The report shows the importance of the hospitality sector, for both jobs and the economy, throughout Europe and in Britain. Policy makers need to focus on how they can allow the beer and pub sector to create jobs and provide new opportunities for business – not least through taxation, such as more action on business rates and beer duty.”

Industry analysts believe that the sector is playing a vital role in tackling youth unemployment across all EU countries, and therefore governments should think carefully before making any major policy decisions that would directly affect the hospitality industry.

Pierre Olivier Bergeron, secretary general of The Brewers of Europe, added that even other sectors linked to hospitality, such as culture, tourism and brewing, should also be considered as they may indirectly place a burden on hospitality jobs.

In recent months, the sector has called on the UK government to invest further money into the industry, especially after the roaring successes of the London 2012 Olympics.

Berkeley Scott is a specialist recruitment agency providing hospitality employment solutions.