Latest statistics show youth unemployment is now approaching one million and the charity is concerned that the most vulnerable in society, such as care leavers, are among the hardest hit.
It is calling for more opportunities to be provided to help care leavers gain the skills and self-confidence they need to get a job.
Action for Children chief executive Clare Tickell said: "The most vulnerable are on the sharp end of this recession.
"Young people leaving care are already at a disadvantage compared to their peers and the current climate further exaggerates this.
"More must be done to help these young people if we are to help them onto a successful path in life where they can have a bright future."
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