The sports sector has pledged to provide 2,000 new posts, including opportunities to coach football, swimming and tennis.
New employees will be supported by the National Skills Academy for Sports, which will offer training in coaching, leadership and sport development. Up to 200 sports coaching jobs will be created through the Football League Trust.
The remaining 5,500 jobs will be in horticulture, renewable energy, construction and the NHS.
Yvette Cooper, Work and Pensions Secretary, said the government is determined to help young people get their first job despite the recession.
She said: "Never again must we see a generation lost to work. We know things will be tougher for some time and unemployment is likely to keep increasing for a while even once the economy is growing. But that's why we're so determined to keep increasing support so that young people can get the jobs and training they need."
Ben Bradshaw, Culture, Media and Sport Secretary, said the jobs would provide exciting new opportunities for young people.
He said: "These jobs will help to create a new generation of talented sports coaches, administrators and community health workers - exactly the people who will help us deliver a lasting legacy from the London Olympics."
The Future Jobs Fund, which was announced in the Budget earlier this year, will provide funding for 150,000 jobs, at least 100,000 of which will be for young people. So far the £1b fund has created almost 55,000 jobs.
