The research, which was carried out by the National Youth Agency and the National Foundation for Educational Research, reveals that four out of five young people found formal careers advice offered by organisations such as Connexions only "a little bit" or "not at all" helpful.

Instead the majority of young people seek careers advice from parents, teachers and youth workers.

Connexions is funded by councils but many are scaling back the service as they tackle a £112m cut in central government funding for careers advice.

The LGA says these latest findings show how careers guidance funding could be used more effectively. It wants to see professional careers advice more targeted at disadvantaged young people and greater support for parents, youth workers and teachers on offering careers guidance.

Councillor Shireen Ritchie, chair of the LGA's children and young people board, said: "Where children have very difficult backgrounds and benefit from an intensive, professional service, then councils will want to continue offering them all the help they can.

"Councils, along with the rest of the public sector, are facing up to some of the harshest financial conditions for decades. Tough decisions have to be made about what services can be delivered in their current form and which could be provided differently."

Meanwhile, further statistics from the NYA reveal that youth work is becoming a more attractive career among young people.

It says that half of entrants to higher education courses for youth and community work in 2008 were aged between 21 and 24, compared to just one in five from this age group in 2002.