Millions of school leavers and graduates with 'fairly useless' degrees are unemployable because they lack basic skills, a major business lobby group will warn today.

The devastating report, from the British Chambers of Commerce, reveals small businesses are frustrated at the quality of applicants, who they say can barely concentrate or add up.

Nearly half of the 2,000 firms surveyed said they would be 'fairly or very nervous' about hiring someone who has just finished their A-levels.

The report warns: 'Too many people [are] coming out with fairly useless degrees in non-serious subjects.'

Its findings raise serious questions about the type and standard of education and skills training in Britain.

The group questioned the owners of 'micro-businesses', those with fewer than ten employees. Many have vacancies which they are desperate to fill but were scathing about the quality of candidates.

The report states: 'In general, younger people lack numerical skills, research skills, ability to focus and read, plus written English.'

One unnamed entrepreneur told researchers: 'Plenty of unemployed, mostly without experience in my sector. The interpersonal skills of some interviewed in the past have been very poor.'

Dr Adam Marshall, director of policy at the British Chambers of Commerce, said the fault lies with the education system, not with the young people themselves.

He said new courses spring up because there is demand from would-be students – but not necessarily from businesses.

Dr Marshall said: 'There may be a course in underwater basket weaving, but that does not mean anybody will actually want to employ you at the end of it.'

He cited the American television crime drama CSI as a prime example. It sparked a huge growth in the popularity of forensic science courses, but Dr Marshall said demand for these graduates is low.

Dr Marshall said he is desperate for the country to listen to business and create the right courses to fit the jobs that are available.

(Read by Nelly Min. Nelly Min is a journalist at the China Daily Website.)

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(Agencies)