The kickstart scheme will help those aged between 16 to 24.
The fund will subsidise six-month work placements for people on Universal Credit in the age group who are at risk of long-term unemployment.
Mr Sunak told the Commons: "The kickstart scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment.“
These will be new jobs - with the funding conditional on the firm proving these jobs are additional.
“These will be decent jobs - with a minimum of 25 hours per week paid at least the national minimum wage."
The kickstart scheme is part one an emergency package to prevent mass unemployment in Britain.
Mr Sunak said employers will need to provide training and support to find a permanent job.
He said: "If employers meet those conditions, we will pay young people's wages for six months, plus an amount to cover overheads."
The chancellor said the hope is for the first people to be in their jobs by autumn.
An initial £2 billion were made available with no cap on the number of places available.