
Up to £32m has been made available to 12,000 young people aged 14-19, who are seen at being at risk of missing out on education and job opportunities.
The Engage scheme aims to target 14-16 year olds at school and 16-19 year olds at risk of dropping out of college.
It is led by Neath Port Talbot Council with Swansea, Pembrokeshire, Ceredigion and Carmarthenshire councils.
It comes a day after figures showed Wales has lost more jobs than any other area of the UK for the second quarter.
The assembly government is backing the project with £17m through an EU source, while six further education colleges across the region which will all provide match funding.
Ministers say the "alternative curricula" of the scheme, including vocational training, one-to-one support and activities to raise self-esteem will encourage young people to remain in education and improve their skills.
Techniques to be used include include mentoring and coaching, community-based activities and sports and "emotional intelligence" training.
'Choices'
Deputy Skills Minister John Griffiths said: "Equipping young people with new skills and confidence will lead to improved career opportunities and a quality workforce, bringing increased economic and social benefits to the region."
Engage also plans to help those not attending school or college by supporting them back into education, and will target youngsters in pupil referral units, care leavers and young offenders.
Neath Port Talbot council leader Councillor Ali Thomas said: "It is so important that we use this funding effectively to motivate learners and to improve their ability to secure rewarding and satisfying careers."
Carmarthenshire council leader Councillor Meryl Gravell said: "This project will be beneficial to many young people across south west Wales as it will provide them with a range of choices so that they can take more control over their own futures.
"We have got to motivate young people to succeed for themselves, and by providing them with choice we will be able to help them to do so."
Jobless
The Engage scheme was unveiled as figures showed unemployment in Wales had risen sharply in the three months between July and September.
The Welsh jobless total increased by 14,000, nearly half the increase for the UK as a whole, to 125,000.
It was the second consecutive three-month period when Wales lost more jobs than any other UK nation or region.
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