Greater Manchester councils will use grants from the Government's Future Jobs Fund to create up to 8,000 jobs over the next two years carrying out street repairs, housing refurbishments and maintenance of public buildings.
The fund is specifically targeted at 18-24 year olds, a group disproportionately affected by the economic downturn.
Manchester City Council, whose slice of the fund has not been disclosed, said it will focus on residents living in areas most affected including north and east Manchester and Wythenshawe.
The council said it will look at creating jobs that would benefit the whole community and boost public services. Job opportunities should be available by October and will be for six months, paid at least the national minimum wage. All jobs will come with training.
Cllr Sue Murphy, executive member for employment and skills at Manchester City Council said: "Manchester is working hard to ensure the impact of the recession is minimised on its local residents providing support with jobs, housing and debt as part of its helping hand campaign. Some of our schemes are already showing positive results and this money will help us build on this."
Manchester already has a £700m programme of civic building and maintenance already underway, securing 8,000 jobs in building schools, highways and transport maintenance.