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Employers have been involved throughout the government's development of a new diploma system, according to the education minister Jim Knight.

Mr Knight and the education secretary Alan Johnson have launched 145 new partnerships to offer students thousands of places on diploma schemes. Up to 40,000 places will be available to young people from September 2008.

Mr Knight said: "Employers have been involved in their development from the start, so that diplomas bring them what they need - young people with sound reading, writing, maths and ICT skills, who come equipped with an understanding of industry."

Students aged between 14 and 19 years olds can embark on a diploma in five areas, from engineering to creative and media. Employers could therefore benefit from students with specialised skills as well as basic literacy and numeracy skills that companies want.

Richard Lambert, director general of the Confederation of British Industry (CBI), said: "We welcome the launch of these new diplomas.

"Employers hope they will inspire students to develop the specialised skills companies want as well as the basic literacy and numeracy skills needed to succeed in work and life. Diplomas should offer a high quality route attractive to all young people.

"Good careers advice and guidance is also vital to ensure students are fully aware of all the options open to them and of the potential to progress."

The new diploma will allow students to progress to further study, university or work, as the course can be chosen alongside GCSEs or A-levels.

Mr Johnson said: "Diplomas will be an attractive and flexible option for young people. They are just one part of our plans to encourage more young people to stay in education and training. With fewer low-skilled jobs, we need more high-skilled young people."