A report by the Prince's Trust, Economic and Social Research Council's Centre for Giving and Philanthropy and Cass Business School found there are now 450,000 under 25s claiming the benefit.
The rise is most pronounced in already socially deprived areas, such as Merthyr Tydfil in Wales and Wansbeck in Northumberland, where as many as one in six young people are claiming Jobseeker's Allowance.
With such a large increase in unemployment, the Prince's Trust warns that youth charities may not be able to cope with demand for support services.
Martina Milburn, the trust's chief executive, said: "Britain's most vulnerable youngsters will be permanently damaged by the downturn, unless they receive the support they need."
The Prince's Trust is now calling for greater support for youth charities from the public and companies.
Currently animal welfare charities receive five times more donations than those supporting young people. Also a third of firms expect to slash their corporate giving budgets, the research found.
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