Australian Jones, 55, who has signed a four-year deal to be England's first foreign coach, wants to name a skipper to take the team to the 2019 World Cup.
"It's a role Joe would grow into and get better at all the time until he's a natural," Young said. "He's somebody the players would get right behind.
"I think he would be a great choice and would make a great England captain."
England endured a miserable World Cup campaign, becoming the first host nation to go out of the competition at the group stage, and coach Stuart Lancaster left his job after nearly four years in charge.
Jones criticised skipper Chris Robshaw during the competition but is planning talks with the 29-year-old, who was made captain by Lancaster in 2012.
Launchbury, 24, has won 28 caps since making his England debut in 2012 and was part of the squad that won two and lost two of their four World Cup group games.
Former Cardiff and Wales captain Young was coaching Cardiff Blues when Warren Gatland installed Sam Warburton as Wales captain in 2011 and he sees similarities between the Welsh talisman and Launchbury.
"Both are very sensible, don't go chasing the limelight, don't do things that will draw attention: Joe leads from the front, and doesn't speak for the sake of it," said Wasps director of rugby Young.
"One of the greatest England captains, Martin Johnson, didn't speak for the sake of it. When he spoke people listened. I think Joe would be very similar."
Wasps lock Joe Launchbury would be an ideal England captain under Eddie Jones, says his club boss Dai Young.