The research, compiled by Tata Consultancy Services and ThinkYoung, found 63% of the 500 young people surveyed in 28 EU countries don't believe education prepared them for the digital demands of work.
In addition, 70% said they would need to acquire further digital skills post-education.
Andrea Gerosa, founder and board member at ThinkYoung, told HR magazine the issue meant that the job market was "wasting time it doesn't have" training young people.
He added the problem affects both employers and young people. "We know that many C-suite leaders are worried about the skills shortage this is creating," he said. "But most of all this is a problem for the young people looking for work. It's very frustrating when they turn up for work without the tools to do the job."
Neelie Kroes, vice-president of the European Commission and commissioner for the digital agenda, said with the world becoming digitalized at "a breathtaking rate", it is crucial to prepare people for the workplaces of tomorrow.
"In order to better meet the needs of coming generations it is incumbent on us as employers, educators and regulators to understand their expectations of what is here termed the digital enterprise," she said.