He told Tech City in London yesterday, that the number of IT and digital apprenticeships in the UK has declined by a quarter over the past year, while recruitment of skilled workers from outside the EU had risen.
Miliband's comments come as Labour launches a Digital Skills Taskforce to look at ways of developing young people's technology education and skills. The taskforce will be led by former Tomorrow's Worldpresenter Maggie Philbin.
Miliband said a Labour Government would make IT firms, take on a full-time British apprentice for every overseas recruit.
He also plans to raise the quality and quantity of apprenticeships, as part of a drive to address the "cost-of-living crisis".
"We hear a lot from David Cameron about the global race. But the truth is that he is letting down Britain's businesses and our young people," Miliband said.
"IT apprenticeships have fallen from 18,520 to 13,750 in the last year alone, leaving businesses having to recruit workers from abroad.
"Businesses need to be able to recruit talent and plug the skill gaps by hiring from overseas. But both they and government have a responsibility to ensure that in the future we have the skills needed for Britain to succeed in the future."
O2 HR director Ann Pickering said it was "encouraging" to see Miliband putting digital skills at the top of his agenda.
"He is right to spotlight their importance in driving forward our sustained economic recovery, but we must avoid the temptation to define the UK's digital skills requirement solely in terms of IT skills."
In September O2 warned Britain will need more than three quarters of a million digitally skilled workers by 2017.
Pickering added: "To seize the growth opportunity, we need a digitally literate workforce and that will require much more than a short-term focus on solving a shortage in IT skills. Simply put, the onus cannot be on the Government alone.
"All businesses have a responsibility to harness the potential of the next generation - whether that's through apprenticeships, improving awareness of digital careers among young people, or delivery of digital skills education."
The Philbin report will be available to all political parties.