In the three months to July this year unemployment increased by 210,000. There are now 947,000 people aged between 16 and 24 out of work - up from 928,000 three months previously.
David Kern, chief economist at the British Chambers of Commerce, said: "Although the increase in unemployment was marginally smaller than feared, the figures are consistent with our assessment that the jobless total will rise to over 3 million next year."
But despite the rising numbers of youth unemployment, Chris Ball, chief executive of The Age and Employment Network (TAEN), fears for the future of older workers. He said: "Yet again, the latest unemployment figures show depressing reading, with more skills and experience of older workers being lost and more older people facing an uncertain future.
"The Future Jobs Fund needs to have a far more aggressive policy of creating job opportunities for older workers. The creation of 150,000 new jobs is barely going to scratch the surface of the overall challenge.
"After a year of recession, we need a national debate on where new jobs are to come from and a far more radical plan for getting employment levels up - with practical measures and realistic forecasts. The Government's current admission of possible spending cuts must be taken into account as well, as these will only further curtail plans to create new jobs."
