The National Training Federation for Wales (NTfW), which has links to 35,000 employers across Wales, is concerned that the budget cut by the Labour Welsh Government will reduce new apprenticeship opportunities.
Plaid Cymru revealed the £7 million in-year cuts by the Welsh Government, earlier this month.
Party of Wales AM for South West Wales Bethan Jenkins, who sits on the Children, Young People and Education committee of the National Assembly said:
"We warned earlier this month that no new apprenticeships places will be available in the next eight months. Now the National Training Federation for Wales has revealed they will struggle to deliver for people on existing apprenticeships and Jobs Growth Wales placements.
"These budget changes are on top of other education budget cuts over the summer when we are unable to quiz Ministers in the Senedd chamber over their plans. How can Labour Welsh Ministers justify this cut when it was done with little warning for young people and employers according to the National Training Federation for Wales?
"The Party of Wales delivered for young people when we created thousands of higher level apprenticeships over two years in our budget agreement with the Welsh Government. This was successful and it is disappointing that Labour has decided to cut the scheme back.
"The Education Minister has failed yet again to protect his budget. I cannot see how successive in-year cuts to schools and skills spending are value for money for the Welsh taxpayer when budget promises have been broken.
"Labour’s rhetoric of giving vocational training parity with university students has been revealed as an empty promise. Cutting the skills budget will prevent young people from accessing the training they need. The long-term cost will be severe, particularly when the Welsh Government should be rebuilding the Welsh economy."