A survey from the British Chamber of Commerce (BCC) has said that nine out of ten companies think that young people are not ready for employment, with more than half of companies saying that this includes graduates.

Three-quarters of the 3,000 companies surveyed said that the skills gap was down to a lack of work experience. The BCC said that work experience should be mandatory in all secondary schools.

BCC director general John Longworth said many businesses took the view that hiring a young person was a "risky" move: "Business people tend to favour more skilled and experienced applicants - and while they do sympathise, their primary function is to run a business which means making business decisions.

"Firms need young people that are resilient, good communicators and understand how to work as part of a team.

"We believe that successive governments have failed our young people by not properly equipping them for their future careers."