Latest official figures show the number of young people in England not in education, employment or training (NEET) has fallen by 100,000 in the space of 12 months.
There were 690,000 people aged 16-24 classified as NEET during October to December 2015 – the lowest number since 2003.
The biggest fall was among 19-24 year olds, which dropped by 86,000 but still stands at 13.8%.
Skills minister Nick Boles said: ‘We are committed to giving every young person, whatever their background, the chance to earn a good living or learn new skills – this is vital not just for the individual but for the whole country.
‘The continued fall in young people not in education, employment or training – leading to today’s record low level – shows that we are delivering on this commitment.
‘There is no room for complacency, though, and through our plans to deliver three million new apprenticeships by 2020 and our qualification reforms, we are determined to build on these excellent results.’