The charity questioned 500 13 to 25-year-olds about education and barriers to work with almost half saying they have a worse chance of succeeding professionally than their parents.
A third said they were not getting enough work experience opportunities with one fifth citing a lack of contacts as a barrier.
As the number of unemployed 16 to 24-year-olds nears one million the Young Foundation has warned that the education system penalises young people who cannot obtain informal guidance and connections which lead to work experience.
Report author Bethia McNeil said: "It's deeply troubling that young people are so despondent about their futures, and the potential to achieve their aspirations, despite unprecedented expansion of learning opportunities."
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