Nick Clegg has announced a review of employment and training options for 16 to 24-year-olds.
Speaking at the CBI annual dinner, the deputy prime minister said “urgent action” was needed to prepare young people better for working life.
And he urged Britain’s five million businesses to create an extra one million jobs.
But Labour said the coalition had “undermined” young people’s prospects during its three years in power.
BBC political correspondent Iain Watson said unemployment among 16 to 24-year-olds remained “stubbornly high”, at just under one million.
In his speech, Mr Clegg told business leaders that school-leavers were faced with a confusing array of schemes designed to support them, with too many getting lost in lost in “a maze of different programmes”.