JOBS tsar Alan Milburn is drawing up plans for business to employ young people to tackle the youth inactivity crisis.

The Labour grandee is working on an incentives for bosses such as major construction sites to help reduce the numbers not earning or learning.

Alan Milburn is working on a major report to tackle the youth inactivity crisis Credit: PA

Andy Burnham sees the youth unemployment issue as a priority Credit: Reuters

Mr Milburn delivered an interim report on the matter in May which included how infrastructure projects bring in a large proportion of their workforce from overseas.

PM Andy Burnham has already declared he is “on a mission” to cut the number as he plans to open up new technical education for kids as young as 14.

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But a source close to the review said: “The interim report is clear that government needs to help influence employer behaviour and the systems that support young people into work, not just leave it to chance.

“The review is looking at what more can be done to minimise risks and maximise incentives for employers to get more young people into work.”

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The focus comes as  unemployed youngsters are living within walking distance of big  infrastructure projects – but are still  finding it impossible to get their career up and running.

Taxpayer-funded projects alone in the East of England – including the Sizewell C nuclear power plant – are worth £220 billion over the next ten years.  

However,  the region has one in ten 16-24 year-olds NEETs – not in education, employment or training, figures show.

There are currently one in eight young people  classed as Neets but this figure is predicted to be one in six by 2031.

Just two in every hundred 16-24 year-olds on Universal Credit are employed in construction despite huge strides made by government funded schemes to increase the number.

Julia Pyke, Chair of Agilia Infrastructure Partners and ex-Managing Director of Sizewell C last night said:  “We’re spending billions on infrastructure while more than a million young people are out of work.She added:  “Why aren’t we better at joining the dots?

“Lots of project teams including Sizewell are working hard to improve things.

“Yet the sheer number of young people out of work and skills shortages in the construction industry tell us that projects are passing over young people on their doorsteps.

“The jobs are there. The investment is there. What’s missing is a decision to give enough priority, early in the planning for projects, to give more local people a genuine route in.”

Labour faces serious  accusations that they haven’t helped the issue by hiking the minimum wage which has been seen as a big driver of young people left without work.

Mr Milburn has also said that primary schools in England should be made to identify children at risk of leaving school at 16 without landing a job.

He said that Ministers need to “make someone responsible” for looking out for kids who risked becoming a ‘NEET’.