In the wake of FA chairman's Greg Dyke's demands for better coaching standards, Jones feels that the government need to make an impact at junior school level.
"For me football at youth level was in the decline from the 1980s when teachers went on strike and ended their involvement and from that moment at youth level the game has been in a decline," he told Sky Sports News.
"And I don't think it is a Premier league problem or an FA problem I think the government has to look more closely at junior school, so it makes more sense to me to put sports teachers in junior schools."
Jones also feels that clubs need to take responsibility for bringing on players and not blame managers for signing foreigners.
"If I was a first-team manager on a three-year contract, I would want to keep my job for probably 15 years, so if that means getting the best players in then fine, if those best players are foreign? What is the answer? He will bring them in and and fine.
"We have got to produce better young player in this country to stop the influx."
Jones also feels that academies including Villa's need to be more selective.
"We are not, in my opinion, selective enough, we have too many players in our academy - where 50 per cent of them don't have a chance to carry on let alone reach the Premier League."