Hundreds of youngsters are having to compete for a handful of apprenticeships because employers cannot afford to take people on.

The Government has come in for criticism because a £3 million campaign called Make Things Happen, fronted by The Apprentice star Alan Sugar, has only managed to recruit 600 apprentices since it launched in January.

But training providers and companies in Sussex told The Argus that increasing awareness of apprenticeship schemes was not a problem.

Instead the issue was that employers are struggling in the recession and cannot afford to take on young people.

At the moment the Government pays for training apprentices aged 16 to 18 but businesses have to pay their wages.

Typically an apprentice will be paid a percentage of the salary of a fully qualified worker until they have completed their training.

Jim Whatley, of Sigta, in Brighton, which organises apprentices for 38 different Sussex companies, estimates the number of apprenticeships has plummeted by 70% since the recession began.

He said: “It is very, very tough going at the moment. We have literally hundreds of youngsters looking for places and we cannot do anything for them.”

Just recently Virgin Atlantic cancelled its maintenance engineer apprentice intake, which would normally take on ten young people each year.

A spokesman for the firm said: “As a temporary measure we will not be offering our apprenticeship scheme this year. Like other parts of the economy the aviation industry is suffering from its worst period in history.

“We hope to reinstate the scheme next year.”

Instead of spending £3 million on an Alan Sugar campaign, Mr Whatley said the Government would be better paying a proportion of an apprentice's wages.

He said: “Alan Sugar has got everyone's appetite whetted and people think there are millions on places available but it is just not the case.”

Sigta works on behalf of engineering firm Goldsworth Medical Limited, based in Euro Business Park, Newhaven, which manufactures medical equipment.

Managing director Alan Pegler said about 140 young people had applied for its latest apprentice place.

He said: “The only money we get back from the Government is college fees. We have to pay the apprentice and obviously we have to have someone to work with them so there is the cost of that skilled person's time.

“If you use an apprentice as just cheap labour then that doesn't apply but there is no merit in that. A financial incentive to take on apprentices would be worthwhile.”

There is some positive news on apprentices in the public sector. In February, Brighton and Hove City Council said it would offer 30 apprenticeship places in this financial year, a third up on last year.

The authority has also won £2.3 million of Future Job Fund money to create 350 new jobs in the city, of which 30% is expected to be apprenticeships.