Experts claim young people looking for their first job face the bleakest outlook since 1994, as reports show that one in five people aged between 16 and 24 currently unemployed.
The report released by the Trade Union Congress (TUC) asserts that government cuts of vital financial support for students, pricing them out of a university education, is exacerbating the youth unemployment issue.
Official figures on today are expected to show that 6,000 more people claimed unemployment benefits in July. In the three months to June, Britain's unemployment rate is forecast to be 8.1%, unchanged from the previous quarter.
According to the TUC, youth unemployment has reached ‘crisis level’ as the reports show that 500,000 young people have been claiming benefits for at least six months.
Today’s warnings come after a survey by the National Union of Students (NUS) showed three out of four youngsters intending to go to university this autumn are worried about getting a job after the finish their course.
Around two-thirds of the 800 students surveyed also expressed their concerns about their finances during their study.
NUS vice president Rachel Wenstone said: "For many people, a university degree has traditionally given them the opportunity to access the employment of their choice.
"Now those who make it to university are no longer guaranteed employment in the way that previous generations were."
TUC general secretary Brendan Barber said: “If this continues we could lose a generation of talented, highly qualified youngsters to blighted careers, debt and under-achievement.
"Ministers should be doing everything they can to help young people but so far all they've done is cut vital financial support for college students and price people out of university.
"Jobs support has been scrapped, scaled back and then reinstated on the cheap. This is no sensible way to help young people into work or education.
“The government’s economic strategy is holding young people back. It’s time for a new plan that invests in their futures, rather than stunting careers before they’ve barely begun.”