YOUNG workers are being exploited in large numbers in the retail and hospitality sectors, a blitz by the workplace watchdog has revealed.

The Workplace Ombudsman recently audited 400 employers nationwide and found 41 per cent, or 165 employers, had underpaid a total of about 1500 staff aged between 15 and 24.

Ombudsman Nicholas Wilson said the blitz by inspectors focused on industries that typically employed young people, with nearly nine out of every 10 of the breaches in either retail or accommodation and food services.

Most of the breaches were due to the underpayment of wages and penalty rates and Mr Wilson said the ombudsman had clawed back a total of $540,300 for the affected young workers.

That is an average of $360 for each employee.