Scotland has an estimated 35,000 'Neets'

The new strategy, More Choices - More Chances, will concentrate on providing vocational courses in schools and extra targeted careers advice.

There are about 35,000 youngsters not in work, education or training.

Some of that number are carers or youngsters taking gap years, but more than 20,000 are simply claim benefits.

Launching the new strategy in Dundee on Tuesday, First Minister Jack McConnell said the number of so-called Neets - young people not in education, employment or training - was an unacceptable waste of potential.

Tackling this issue is not just a moral imperative for Scotland, it's an economic necessity Sir Robert Smith

He said: "Some young Scots take time out of work or education as a transitional phase. But for too many young Scots it has become, or threatens to be, a permanent state of life, a permanent state of mind.

"If we can end this human waste, we will not only release individual human potential, but we will also significantly add to Scotland's economic success."

As part of the new strategy, the executive will invest about £1m over the next two years into extending the XLerate programme, which prepares young people for the world of work, to cover 100 schools.

Jack McConnell said the problem was a waste of potential.

Careers Scotland will also receive £2.4m to improve career advice for young people and a scheme to pay those taking part in "informal learning" as a step towards working, education or training will be tested.

The executive has urged the private sector to get behind the initiative, which is being backed by Sir Robert Smith, of the Smith Group and Sports Division founder and philanthropist Sir Tom Hunter.

Sir Robert said: "Tackling this issue is not just a moral imperative for Scotland, it's an economic necessity.