Reaching the Hardest to Reach: Breaking Barriers? found young people were held back by a lack of qualifications, drug misuse or criminal records.
The report recommends a more flexible education system to cope with the needs of disadvantaged groups.
More than 900 people aged 14 to 25 were interviewed.
Trust chief executive Sir Tom Shebbeare said: "This not only shows that many of these young people are facing significant barriers, but crucially they aren't picked up soon enough."
The trust's report is the first of three and is part of its 11m three-year partnership with the Royal Bank of Scotland.
www.princes-trust.org.uk.
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