The proportion of teenagers not in education, employment or training - so-called Neets - has increased to 10.3%.
Around 191,000 16-to-18-year-olds did not have a job or were studying during the second three months of this year, according to Department for Education statistics.
That is up from 181,000 in the first quarter of this year.
When the age bracket is extended to include those up to the age of 24, the total number of Neets hits 968,000, up from 949,000 in the previous quarter.
But the number of unoccupied 16-to-24-year-olds has fallen when it is compared with the same period last year.
The areas with the highest number of Neets are in the North, such as Yorkshire and Humberside, while London and the East Midlands have the fewest.
A Government spokesperson said the numbers were "still too high" and that it is "determined to tackle this."
"We are spending a record £7.5billion on education and training for 16- to 19-year-olds, we have increased apprenticeship starts with growth across all ages, in all sectors and throughout the country," they said.
"As part of the Youth Contract, we are spending £126million over the next three years on extra targeted support for the 55,000 16- and 17-year-olds most in need of education and training."
But a new study has revealed that the majority of companies are not involved in the Youth Contract scheme, which offers employers a wage incentive of up to £2,275 for hiring a young person.
Almost a third of 600 employers questioned by the Recruitment and Employment Confederation said they did not know about the scheme, while 36% had no plans to sign up to it.
The survey found that four out of five companies are not currently involved in the £1bn programme which was launched in April.
