Hodgson has been criticised by some sections of the press following the Three Lions' unconvincing 1-0 victory over Norway at Wembley on Friday evening, which was the team's first match since exiting the World Cup at the group stages.
Taylor, who managed England between 1990 and 1993, believes that Hodgson's job has been made more difficult following the retirements of senior players such as Steven Gerrard, Frank Lampard and Ashley Cole.
"It's very difficult when you bring young players altogether," Taylor told BBC Radio 5 live.
"The pressure on him has been to almost produce a new England side and that's what he is doing, but it does take time for players to settle into international football and we have to give them that time."
England begin their Euro 2016 qualification campaign against Switzerland in Basel this evening.