Responding to comments made today by Dr Mary Bousted, general secretary of the Association of Teachers and Lecturers, Mr Frost said: "Our education system is failing the majority of young people, and businesses are forced to recruit people without basic skills.
"Only 44 per cent of 16-year-olds leave school with five GCSEs at grade A-C including English and maths. As a result, large numbers of school-leavers born in 1990, leaving school in 2006, will be the economic underclass in 2016.
"Youngsters leaving school now are our future workforce. Businesses have a responsibility to get into their local schools and work with them, especially as the Government is focusing on broadening the curriculum and introducing vocational diplomas.
"Involving businesses at a local level could be a key driver in raising standards and creating a better understanding of the world of work."