Youth unemployment 'set to treble'

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Areas such as Hull, Sunderland, Barnsley, Doncaster and Swindon have been hardest-hit by rising levels of young people out of work for longer than a year, a study by research institute Centre for Cities found.

The group said the Government's £1 billion fund aimed at creating 150,000 new jobs between 2009-11 for long-term unemployed young people was a "sticking plaster" because of the scale of the problem.

The fund will help less than half the expected 350,000 people aged 16 to 24 expected to be long term unemployed by the end of 2011, said the report.

Cities worst hit by youth unemployment have seen increases of up to 7% in the numbers claiming jobseeker's allowance since the recession started, said the group. Swindon and Hastings have suffered big increases as well as former industrial areas in northern England, the study of English cities found.

Dermot Finch, director of the Centre for Cities, said: "The Government is right to introduce the Future Jobs Fund at this time, but it will not be big enough to help every long-term unemployed young person.

"So it will need to be targeted very carefully on those young people in cities that have seen a recent rise in unemployment due to the recession."

The group estimated that 1.18 million young people will be unemployed by 2011, with almost a third out of work for longer than a year. Under 25s make up one in five of Britain's working population but two in five of the unemployed, according to the research.

When the class of 2009 leaves formal education this summer, an estimated 300,000 graduates and 400,000 school leavers will join the queue of people looking for work.