The government has been urged by the Confederation of British Industry (CBI) to use a quarter of its Ã‚Â£500 million recruitment stimulus to subsidise 50,000 new apprenticeships for young people.
Richard Lambert, director-general for the CBI, said that young people in the UK were increasingly likely to have difficulties finding employment when they leave education, due to the testing conditions of the current job market.
He added that this could prove damaging to their long-term career prospects.
Commenting on the news, General Secretary of the Trade Union Congress Brendan Barber said that while financial incentives may encourage some employers to consider apprenticeships, money alone would not be enough to tackle the problem.
“The government must continue to encourage employers in other ways, for example, building on the positive steps government has already taken to get firms bidding for public sector contracts to offer more apprenticeships,” he added.
Under the CBI proposals, firms would get a Ã‚Â£2,500 subsidy on average towards the cost of training each extra apprentice.