The government had previously announced a 2.5 billion British pound (US$3.36 billion) youth employment support package unveiled earlier this year, which the government said at the time would help create 200,000 jobs.

The government will fund 300,000 placements including work experience and short government-funded programs for jobseekers claiming benefits.

Placements will focus on sectors such as construction, health and social care and hospitality.

The initiative follows a review led by former minister Alan Milburn, which warned Britain risks a "lost generation" without urgent action.

The report said the number of 16- to 24-year-olds not in employment, education or training has risen to just over 1 million, or one in eight, and could reach one in six within five years.

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It highlighted a sharp decline in entry-level jobs and work experience opportunities.

The report said public spending is skewed, with about 25 pounds spent on benefits for every pound on employment support for young people.

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