Andy Burnham has announced that employers will be required to disclose the pay they are offering for new roles.
Under legislation expected to be introduced, companies would have to include salary details in job advertisements.
The Prime Minister said: “Whether you are a young person starting your career or a parent supporting your family, you should know what a job pays before investing your time and effort in an application.
“That is why we will make it a legal requirement for every employer to state how much a role pays.”
Previous research from the Chartered Institute of Personnel and Development (CIPD) found that only 41 per cent of employers consistently included salary details in job adverts.
By contrast, about 27 per cent never disclosed pay, according to the organisation’s 2023 survey of 832 people with responsibility for hiring.
Mr Burnham also urged businesses to “open more doors” by giving young people the experience and confidence needed to take their first steps into employment.
The Government has faced mounting criticism over the state of the jobs market. Between April and June this year, 13 per cent of 16 to 24-year-olds were not in education, employment or training (Neet).
Prime Minister Andy Burnham speaks to the media on Wednesday in St John’s, Antigua
Earlier this year, from January to March, the number of 16 to 24-year-olds classified as Neet exceeded one million for the first time since 2013.
A review of young people and employment led by former Labour health secretary Alan Milburn is expected to report later this month.
Across the wider labour market, vacancies dropped by an estimated 21,000 to 691,000 in the three months to September, according to figures from the Office for National Statistics.
Following last week’s Budget, Conservative Party leader Kemi Badenoch accused Labour of destroying jobs.
Speaking in the Commons, she said businesses needed “cheaper energy, flexible labour markets and lower taxes” but were receiving none of them.
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Liberal Democrat leader Sir Ed Davey blamed “a lack of economic growth” for the cost-of-living crisis, higher taxes, strained public services, struggling high streets and a shortage of jobs and opportunity.
He said: “British business is being held back, and above all it has been held back by the terrible damage caused by the Conservative Brexit deal.”
The proposed salary transparency rules were welcomed by TUC general secretary Paul Nowak, who said: “Anyone who has searched for a job knows how frustrating it is to see ‘competitive salary’ instead of a clear figure showing how much the role pays.
Research by the Chartered Institute of Personnel and Development (CIPD) has previously found 41 per cent of employers always included salary information in their job adverts
“Why should candidates have to complete lengthy applications and interviews without knowing whether the job will pay enough to support them?
“The Government is right to tackle this disrespectful practice.
“Employers should be transparent with prospective recruits and state clearly how much each position pays.”
Mr Nowak said ministers should go further by requiring employers to outline flexible working arrangements in every job advert.
Nishi Mayor, of the Youth Futures Foundation, said: “With one in eight 16 to 24-year-olds currently Neet, it is both right and important for the Government to work with employers to make the route into employment easier by removing barriers to entering the workplace.
“Our trials with employers testing innovative approaches to recruiting and retaining young people show that too many young people struggle to access opportunities when searching for work.
“Clear pay information can help young people make better-informed choices about employment. For employers, it could attract more suitable applicants and help secure the talent pipeline they need.”
Penny East, chief executive of the Fawcett Society, said: “For too long, secrecy over salaries has disadvantaged women, forcing them to negotiate without key information and making it harder to challenge unequal pay.
“Requiring employers to publish salary ranges in job adverts would be an important step towards fairer work and closing the gender pay gap.”