All teenagers in Britain, where a quarter of adults have the maths skills of a 10-year-old, will have to study mathematics and English up to the age of 18 under a Labour government to better equip youngsters for the workplace.
The move, set to be unveiled tomorrow, will bring England and Wales in line with most developed countries, where such key subjects are compulsory until students leave school.
England is the only country in the developed world where the generation approaching retirement is more literate and numerate than the youngest adults, the Guardian reported.
According to the Organisation for Economic Co-operation and Development (OECD), a quarter of adults in England have the maths skills of a 10-year-old.
The Confederation of British Industry (CBI), which has been pushing the government to address the poor maths and English skills among school-leavers, offered strong support for Labour leader Ed Miliband's plan.
Neil Carberry, CBI director for employment and skills, said: "This is an important contribution to building a more effective education system between 14 and 19. Businesses will welcome the focus on English and maths to 18."
The government recently announced that teenagers in England who fail to achieve at least a grade C in English and maths GCSEs will have to continue studying the subjects.
The education secretary, Michael Gove, said the subjects were the ones "employers demand before all others".
Labour's announcement is an attempt to steal a march on the coalition in the 2015 general elections on the issue and show its commitment to improving the lackluster performance in international league tables.
However, Martin Doel, chief executive of the Association of Colleges, which represents sixth-form, specialist and further education institutions, said the policy would demand significant investment and many hundreds more teachers.
"Labour is absolutely right to identify maths and English as essential vocational skills," he said. "And in principle, therefore, asking everyone to do maths and English to the age of 18 is a good idea.
The proposal on maths and English is part of a package of reforms Labour is looking at with the goal of cutting the number of young people not in education, employment or training and driving up standards in key subjects.
Along with showing significant skills in maths and English, teenagers would need to attend a personal skills development programme and carry out an extended project as well as pursuing their core subjects.
The shadow education secretary, Tristram Hunt, said the proposed changes would address the needs of the "forgotten 50%" of young people who do not wish to pursue a traditional university route.
Labour argues that the coalition has overlooked the needs of this group by failing to offer alternative routes and by scaling back on careers advice.
