Up to £1.2 million will be invested in Manchester and the West Midlands, dedicating extra time and resources to young people facing the biggest hurdles to getting a job, like care-leavers and young offenders.

Following a successful programme run with West Midlands Mayor Andy Street, Youth Employability Coaches will also continue to support young people into work and for up to 6 weeks after they start a job, helping them continue to build skills and stay in employment.

A further £2.8 million will be invested into cutting-edge technology to provide jobs ‘apps’ to recommend the best jobs and skills training to jobseekers and people looking to find better, higher-paid jobs.

It will provide local areas with information on local skills supply and demand, and jobseekers or those seeking to progress in work will be able to search for roles based on their skills and experience. The pilot service will show them exactly what new skills they need to move into higher-paid roles available near them.

Work and Pensions Secretary Dr Thérèse Coffey said:

I want to give everyone the best start in life, and every chance to get not just a job, but find that dream job.

That is why we will provide extra help for disadvantaged young people and use the latest technology to help people climb the career ladder.

We’ve seen 3.7 million more people in work since 2010 and wages outpacing inflation for a year and a half now, but I want to ensure we’re always looking at new ways to help anyone no matter the barriers they face into a good job.

Both pilots could then be rolled out nationwide, helping reduce youth unemployment further after it fell 48% since 2010, and helping more people boost their earnings after new data this month showed average pay rising by its fastest rate in a decade.

Latest data released in September shows UK employment has increased by 3.7 million since 2010. Around three-quarters of that increase in employment has come from full-time, permanent and higher skilled roles.

Youth unemployment has also halved since 2010, with 451,000 more young people in work. The number of children growing up in workless households is also at an all-time low.

Income inequality is at its lowest for 30 years as wages grew by 4% in July, outpacing inflation for 18 months in a row.