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Almost a million young people are not in school, college or work, government statistics have shown.
Figures from the Department for Education suggest the proportion of 18 to 24-year-olds in England not in employment, education or training (Neet) has risen to 18.4 per cent.
It is the highest recorded figure for the second quarter since 2006 and is up from 16.3 per cent last year.
The statistics also reveal that many teenagers are leaving school with few prospects
Almost one in ten, (9.8 per cent) 16 to 18-year-olds were not in any type of work or education in the second quarter of this year.
And last week government figures showed that the youth unemployment rate for 16 to 24-year-olds has risen to as high as 20.2 per cent, up 0.2 per cent from the three months to March.
A spokesman for the Department for Education said: "The number of young people not in education, employment or training has been too high for too long - we are determined to bring the numbers down."
However, shadow education secretary Andy Burnham said the government had been "far too complacent" about young people and a generation risks being left behind.
"Putting young people on the dole is a waste of money and a waste of their potential," he said.
"By scrapping Labour's guarantee of an apprenticeship place for young people who want one, scrapping the EMA and cutting careers services, this government is making it harder for young people to get on - so that for the first time there is a risk that the next generation will do worse than the last."
Skills minister John Hayes said: "We're taking action to get our young people into work, helping restore a sense of responsibility and pride in our communities.
"Having built the largest apprenticeships programme our country has seen, we'll now do more to get young people who lack basic skills up to speed."
Dods Parliamentary Communications Ltd
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