Youth unemployment within the Riverina federal electorate was 13.1 per cent in January, remaining almost three per cent higher than the NSW average, according to the Australian Bureau of Statistics.

NSW Business Chamber regional manager Andrew Cottrill said both young people and businesses were struggling with the effects of high unemployment.

"This is a major issue that we have got to sort out," he said.

"You can't be satisfied having a skills shortage at the same time you have high youth unemployment.

The Business Chamber has found skills shortages ares like plumbing, plastering and tiling as well as specialty food service roles like baking.

Mr Cottrill was also concerned that young people were being trapped in unemployment by leaving school with no pathway to acquire the skills that would lead to career opportunities.

The Riverina's youth unemployment rate has been about four per cent above the NSW average for about 18 months.

Mr Cottrill said businesses were not being able to find applicants with the right skills.

"We have got employers who are unable to find people to take on apprenticeships and traineeships yet at the same time we have poor youth unemployment," he said.

"There are a number of factors that influence that issue and one of them is that the careers advice model in schools is not working adequately.

"We survey 30,000 young people every year and 19 per cent said they were pushed towards a university degree when they felt it wasn't necessarily the right step for them."

Mr Cottrill said there needed to be more consultation between schools, business and TAFE to help students transition to the workforce.

"The TAFE system needs streamlining and we need school-based apprenticeships," he said.

"Far too many students who present for jobs just aren't ready."