The report from Her Majesty's Inspectorate for Education and Training in Wales found that, while local authority youth work training programmes are generally good, there is not enough focus on understanding key Welsh Assembly Government (WAG) policies and how they impact on youth support services.
Estyn called for better communication between the WAG and local authority youth services about national strategies and priorities.
Chief inspector Bill Maxwell said: "The Welsh Assembly Government's national youth service strategy stresses the importance of focusing on regional collaboration and workforce development.
"The challenge now is for the WAG and local authority youth services to improve communication so they effectively match the national priorities of the annual training grant with local needs."
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