The Night Time Industries Association warns that government tax policy and rising employment costs are directly driving youth unemployment higher by discouraging businesses from recruiting. As one of the UK’s largest employers of 18 to 30 year olds, the night time economy says increased National Insurance Contributions and mounting operational costs have created a system that actively works against youth employment.

Michael Kill, CEO of the Night Time Industries Association, said:

“This government has created its own youth unemployment crisis through a tax system that is fundamentally not pro employment and certainly not pro youth employment.

The night time economy has historically been one of the largest employers of young people in the UK, providing essential first jobs, flexible work, training opportunities and long term careers across hospitality, leisure, live events and entertainment. Yet businesses are now being punished for employing people.

Rising National Insurance Contributions, escalating wage pressures and relentless operational costs have destroyed confidence in recruitment across large parts of the sector. Employers are being forced to reduce hours, freeze hiring or stop recruiting altogether because the financial risk of taking on staff has become too high.

The consequence is now clear. Young people are being locked out of the workforce at the very moment they should be building skills, confidence and careers.

You cannot continue increasing the cost of employment while claiming to support growth and opportunity. Current policy is actively shrinking entry level opportunities and damaging sectors that traditionally employ large numbers of younger workers.

If the government is serious about reversing rising youth unemployment, it must urgently reduce the tax burden on employers, starting with National Insurance Contributions, and rebuild confidence in recruitment before long term damage is done to an entire generation entering the workforce.”