A survey of more than 850 schools and employers shows that little is being done by employers or schools to prepare young people for work.
Over half (52%) of all businesses interviewed said they did not focus enough on recruiting graduates and school leavers.
While only 42% of schools saw actual employability of students as the most important part of the careers curriculum.
Of those schools surveyed by youth careers site b-live, just one in four had direct links or partnerships with national organisations.
Tanja Kuveljic, managing director, b-live says: “Only when employers provide support to schools in delivering the careers curriculum will young people leave education with the relevant skills and realistic expectations of the workplace.
“The research suggests there is an understanding on both the school and employer side that more needs to be done to prepare young people for work. But teachers have competing pressures, with much of their time spent focusing on exams they just don’t have the time or know how to achieve the employability agenda.
“Better communication between young people, pre-employment stage, and businesses will give young people a better insight into the jobs available and the skills and qualifications required. It will also add real value to the business by creating a sufficient talent pipeline, cutting resourcing costs and increasing retention.”