Community-owned pubs, cafés and restaurants are a proven part of the solution to rising youth unemployment, particularly in rural areas where opportunities are most limited, according to Plunkett UK.
The call comes as the latest Office for National Statistics figures show nearly one million 16–24-year-olds are not in education, employment or training (NEET) – the highest level in more than a decade – underlining the scale of the challenge facing young people entering the workforce.
At the same time, the “first rung” of the career ladder is disappearing, with fewer entry-level roles available for young people to gain vital early experience.
Across the UK, community-owned hospitality businesses are already helping to bridge that gap – creating accessible, local pathways into employment where traditional opportunities are declining.
“Hospitality has traditionally provided that crucial first step into work,” said Plunkett CEO James Alcock, “but in many communities those opportunities are disappearing. Community-owned pubs and cafés are stepping in to fill that gap, creating accessible, local jobs where they are needed most.”
In rural areas, where transport links are limited and job opportunities are fewer, the challenge is even more acute. Community-owned businesses provide flexible and inclusive routes into employment, from volunteering and training through to paid roles.
Plunkett’s research shows that over half of community businesses employ 16–25-year-olds, underlining their importance as a vital source of first jobs, skills development and work experience.
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The charity, which represents the UK’s rural community business sector, says that for many young people, particularly Gen Z, work is not just about income but also connection, purpose and community.
This, argues Plunkett, is something community-owned hospitality is “uniquely placed to provide”.
It gives the example of the Auctioneer’s Arms in Caverswall, Staffordshire, a community-owned pub which gave life-changing experience to a teenager, Tilly. She joined the pub as a teenager, initially struggling with anxiety and low confidence.
In a supportive, community-run environment, she gained experience, completed an apprenticeship, and progressed into a deputy manager role. Her journey demonstrates how community-owned hospitality can provide not just jobs, but pathways into long- term careers, confidence and independence.
At the White Horse in Stonesfield, Oxfordshire, Skye’s experience shows the wider role community hospitality plays for young adults navigating uncertain career paths, adds Plunkett.
“When I graduated university and came back to the village, I wasn’t 100% sure what to do, both job-wise and just in general,” she said. “Loneliness and isolation were big things. But working at the pub gives you a sense of being part of something – you’re involved with your co-workers, with the community, with those visiting. You feel like you’re important and you make a difference for other people.”
Her experience highlights how community-owned venues not only create employment opportunities, but also tackle isolation and support young people’s wellbeing and sense of belonging, says Plunkett.
But community-owned hospitality businesses are operating in an increasingly difficult environment, as rising costs continue to put pressure on the wider sector.
“Without the right support, we risk losing one of the few remaining accessible routes into employment for young people – particularly in rural areas,” warned Alcock.
Plunkett UK is calling for greater recognition and targeted support for community- owned hospitality through its Save Rural Hospitality campaign, helping more communities to establish and sustain locally owned pubs, cafés and essential services.
“If we are serious about tackling youth unemployment and strengthening rural economies, we must back the models already delivering results,” Alcock added. “Community ownership works – but without support, its potential will remain underused.”
