Most employers admit that young people are well prepared for the world of work.
An investigation by IFF research on behalf of the UK Commission for Employment and Skills discovered that the majority of businesses were pleased with the calibre of the younger workers they recruited.
The National Employer Skills Survey for England 2009 report, which questioned 79,152 employers, found that 66 per cent of businesses who employed 16 year-olds straight from school thought that they were either well or very well prepared for work.
In addition, 74 per cent of employers believed that college and school leavers aged between 17 and 18 were well prepared for work, while 84 per cent of employers found new graduates to also be well prepared.
Businesses which employ a young workforce may find that they improve customer service as they have increased levels of motivation because they are more willing to succeed in a competitive jobs market.
Chris Humphries, chief executive of the UK Commission for Employment and Skills, said that employers should ditch their prejudices regarding younger staff and concentrate on hiring the best talent available.
"Employers who actually have experience of working with young people seem to be much more positive about them than employers more generally," he added.
Mr Humphries went on to say that businesses should take advantage of work experience, apprenticeships and internships as these schemes are a good way to sample the quality of young people.
"I would encourage all employers to provide these, as well as being open-minded enough to make suitable permanent positions available for young people looking for their first job," he added.
While businesses can benefit from recruiting young workers they are also set to save millions after the scrapping of the default retirement age, according to government estimates.
In a performance improvement consulting report, the Department for Business revealed that employers are set to save £45 million in the first year of the abolition of the default retirement age and this will rise to £71 million per year in ten years.
Savings will be made through the reduction of administrative procedures such as employment tribunals, states the report.
Michelle Mitchell, director of charity Age UK, said: "There's overwhelming evidence to show that older workers, the UK economy, public finances and employers themselves will all benefit from the announced abolition of forced retirement legislation."
The default retirement age will end October 1st 2011 and there will be a six-month transition from the current regulations starting in April 2011.
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