Young women and people in rural and regional Victoria are likely to be the biggest losers from state government cuts to TAFE.
The state's peak youth advocacy group has released a report on the impact of the government's $290 million cut to TAFE.
It has called for a special fund to be set up to ensure Vocational Education and Training (VET) providers can continue to offer courses for Victoria's most disadvantaged young people.
Youth Affairs Council of Victoria (YACVic) chief executive Kate Colvin said young women and people living in rural areas are likely to be the hardest hit by the funding squeeze.
She said young women and people living in the country tended to favour courses in areas such as hospitality and sport, which had had funding reduced.
Young people were also more likely than older people to be enrolled in certificate I and II courses, which were not funded at the same rate as previously.
Ms Colvin said the government was on the right track in trying to encourage young people to enrol in courses that were more likely to lead to a job.
"But the problem, we think, is that young people might choose not to do any courses at all," she said.
The YACVic wants the state government to set up an equity fund that would deliver money through a tender process open to public and private VET providers.
Providers of programs that helped young, disadvantaged students gain ongoing employment could apply for the extra cash.
"Often young people will enrol in a course and not complete it or it doesn't lead to a job," Ms Colvin said.
"There is a body of evidence that shows what it is that's needed to encourage young people to take that full pathway from studying into a job.
"Programs that deliver that should get some additional resources."