Labour is critical of the Government for training too many lawyers and accountants and not training enough tradespeople and information technology specialists.
Party leader Phil Goff says more effective training needs to be provided for those young people who are currently not in work, training or education.
National announced on Sunday a new policy for 16-and-17-year-old beneficiaries, which includes more hands-on control of their lives.
Mr Goff says the Government has got its emphasis wrong with too many accountants and lawyers being trained for the number of jobs available.
Social Development Minister Paula Bennett says the policy is aimed at providing more skills training for young people.
She says the number of 18-to-24-year-olds on the unemployment benefit has fallen from about 23 thousand to under 17 thousand in the past year.
But Mr Goff says the number of young people unemployed or not in training or education is the worst since the Great Depression.