Unemployment has fallen to a six year low.
Figures from the Office for National Statistics also show that youth unemployment has fallen by just over 200,000 over the last year.
Work and Pensions secretary Iain Duncan Smith has hailed it as a sign his welfare reforms are working.
But one think tank reckons that young people still face the scars of being out of work so long and could be back signing on again in the future.
How can young people get the jobs they want?
Louise Evans, from the Institute of Public Policy Research, said although there have been a lot of new schemes launched there is still a gap between the education system and work.
She added there is also a ‘mismatch’ between what students are studying and jobs that are available.
Abigail Holsborough has been looking for work since graduating from university.
She said a lot of young people are taking jobs just to bring in the money as opposed to going into a field of work they want to.