One in six 16 to 24-year-olds are not studying, working or in training amid fears young people have been hit hardest by job losses.
Recent job figures also suggest 20% of 16 to 24-year-olds are jobless
Department for Education statistics show 979,000 people in this age range were classified as "Neets" - those not in education, employment or training - between April and June.
That is 107,000 more than the same time of year in 2010 and 126,000 more than five years ago. It is the highest figure for April to June since 2006.
Unemployment among 16 to 24-year-olds rose slightly at the start of this year, with 20.2% out of work. Putting young people on the dole is a waste of money and a waste of their potential.
Shadow education secretary Andy Burnham
The prospects for those at the older end of the age range appear to be worst with 19.1% of 19 to 24-year-olds in this category, compared to 9.8% 16 to 18-year-olds.
The prospects are not much better for school-leavers, with almost one in 10 16 to 18-year-olds not studying, working or in training.
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."
The Government says it is improving and expanding apprenticeship schemesOfficial figures show the 2008-2009 recession led to an increase in the number of young people who were jobless.
In 2008, the unemployment rate for people this age was 14%. By 2011 it was up a further 6%.
Shadow education secretary Andy Burnham accused the Government of being "far too complacent" about young people and said 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."
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