Rise in young people classed as Neet

At the end of 2007, 9.7 per cent were classed as Neet (not in education, employment or training) with this figure rising to 10.3 per cent by the end of 2008.

While the percentage of 16- and 17-year-olds out of work, and not in training or education fell slightly, the proportion of 18-year-olds rose from 14.2 per cent to 16.6 per cent.

Ian Wright, junior minister for 14-19 reform and apprenticeships, said: "In previous recessions, unemployment among this age group rose sharply, but these figures show this in not happening this time around, nor will we allow it to happen.

"Now is the time to invest in young people and in the future of this country. When the recession lifts we will have the most skilled generation ever, waiting to take the new jobs created."

But Martina Milburn, chief executive of The Prince's Trust said the figures could have wide-felt implications.

She said: "Too often young people leaving school with few qualifications or job prospects face a downward spiral towards a loss of self-confidence, and even crime, homelessness and drug use. Jobless teenagers will cost the state billions of pounds if we fail to help them into work, education or training. All of us will feel the impact."

Yesterday, Children's Secretary Ed Balls confirmed £655m of funding to guarantee a place in education or training for every 16- and 17-year-old from September this year.

He said: "Clearly, it's disappointing to see a slight rise in the proportion of young people not in education, employment or training but the days of young people only having one chance at getting their qualifications or not having any opportunity to progress are long gone."