Called Jobs Growth Wales, the scheme will see the Welsh government subsidise six-month work placements for unemployed young people.
Those taking up the placements will be paid the minimum wage for 25 hours a week. The Welsh government will also cover employers’ National Insurance contributions.
Most placements will be with private firms, although some placements are being secured by the Welsh government within the voluntary sector.
Deputy minister for skills Jeff Cuthbert said: "The current financial climate has led to the emergence of a growing number of 16-to 24-year-olds who have fallen outside work or education.
"Jobs Growth Wales will enable individuals to gain good quality work experience to progress into permanent employment or where appropriate an apprenticeship."
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