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The report by the assembly government, the BBC and the Welsh language broadcaster SC4, also claimed that more needs to be done to establish the use of the Celtic language online, as few used it for social media or when they use the internet for research or entertainment.

"There is no doubt this is a crucial time for the Welsh language," Cathryn Ings, business manager of Welsh language initiative Menter Cwm Gwendraeth, told the Guardian.

"If we don't act the number of people speaking Welsh will continue to fall."

She said that it was difficult for young people living next to a "language superpower" who are continually bombarded with English.

One of the main problems, the report confirmed, was the fear of getting things wrong and therefore people need to be reassured it was acceptable to use "everyday Welsh" peppered with some English words.

First Minister of Wales, Carwyn Jones, said: "Encouraging young people to use more Welsh is one of the priorities in our strategy, A living language: a language for living.

"It is therefore interesting to note the results of the research regarding the engagement of the 16-24 year old age group with the language. It underlines the need to increase the provision of Welsh-medium activities for young people, and to increase their awareness of the value of the language."

The government has found that there are not enough opportunities to use Welsh in everyday life.