As part of a partnership between Newcastle YOT and the Environment Agency, young offenders will be able to work in environmental management as part of their community sentence.
Those who successfully complete their sentence will be able to apply for a full-time job with the social enterprise, called Skill Mill Ltd.
Last week it emerged that the reoffending figure for young offenders has risen to a 10-year high.
Frances Done, chair of the Youth Justice Board (YJB), said: “It has been proven over many years that gaining skills, training and employment are critical in reducing reoffending and enabling young people to move on and live more productive lives.
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