Nearly half of all young black people left unemployed

Analysis by the think tank shows the rate of unemployment for this group of young people has risen from 35 per cent before the downturn, to 48 per cent.

Young black people are now twice as likely to be unemployed than their white counterparts.

Lisa Harker, co-director of IPPR, said the findings were "a worrying reminder" that young people from ethnic minorities are "far more likely to become part of a generation lost to unemployment and disadvantage".

She said: "Extra action should be considered, such as increasing the number of Future Jobs Fund places in disadvantaged areas. This would ensure more young people can learn new skills and stay close to the labour market while looking for permanent work."

Despite this, official statistics show that youth unemployment dropped overall in the last quarter of 2009.

The number of unemployed 16- and 17-year-olds fell from 203,000 to 199,000. The number of out of work 18- to 24-year-olds reduced from 740,000 to 728,000.

The number of unemployed 16- to 24-year-olds now stands at 927,000.

Martina Milburn, chief executive of The Prince's Trust, warned that one in five young people are still struggling to find a job.

She said: "We welcome any fall in youth unemployment levels, but it is too soon to be complacent. Britain is in danger of losing a wealth of young talent if we fail to help them into work."

Shaks Ghosh, chief executive of the Private Equity Foundation, claimed many more young people are likely to become unemployed before the recession is over. "Given the intergenerational nature of worklessness - we must work together to avoid the creation of a lost generation," she said.