Increasing numbers of young people believe they are being beaten to jobs by more experienced older workers accepting less competitive rates of pay, a report suggested today.

More than two thirds (68%) of the 1,800 18 to 24-year-olds across the UK polled thought lack of experience was preventing them from finding employment.

This constituted a rise of 16% from last year, according to the second annual youth unemployment study by welfare-to-work provider Reed in Partnership.

The report also found 90% of young people believed it was important or very important to undertake work experience to help land a permanent role.

More than half of those surveyed (53%) said they were now willing to take on unpaid work - up 9% from 2009.

Chris Melvin, chief executive of Reed in Partnership, said valuable work placements needed to be open to everyone not just those with contacts.

He said: "Good work experience is becoming more and more important to help young people stand out in a competitive market.

"But, while those with good connections and networks can find opportunities through friends or family, almost two thirds of those looking for work experience can't find a relevant opening.

"We need to ensure opportunities are open to everyone or we will exclude many of those most in need of support and risk forcing them into long term unemployment."

The survey also revealed that while competition for jobs continued to be fierce amid the fragile economic recovery, young people thought the situation was gradually improving.

Approximately 61% cited too much competition as a barrier to work, down from 71% last year.

It found just under two thirds of young people were optimistic, with 65% believing it would take three months or less for them to find a job.

Among its seven recommendations, the organisation advised the Government's new Work Programme to include an option for young people to undertake work experience.