Youth Unemployment At New Record High

Report: Economy To Flatline With More Jobless

Youth unemployment has reached a new record high to leave over 22% of 16 to 24-year olds without a job.

The latest official statistics show the number of young people without work hit 1.042 million in the three months to January.

The overall jobless total rose by 28 thousand to 2.666 million over the period while the number of people claiming Jobseeker's Allowance increased by more than expected to 1.61 million - up 7,200 in February.

The jobless rate remained the same at 8.4% - its highest level since 1995.

It intensifies pressure on the Government to act in this month's Budget.

However, there was some encouragement for ministers from separate figures showing that while public sector employment fell by 37,000 in the final quarter of 2011, the numbers employed in private firms increased by 45,000.

There have been a number of schemes and initiatives to boost private sector growth.

It is a year since the Chancellor George Osborne pledged to create jobs through so-called enterprise zones .

The first four areas to be announced were in London, Nottingham, Manchester and Liverpool.

And on the banks of the River Mersey lies one of these zones - a 2km stretch of disused docklands which shows little sign of redevelopment.

Unemployed engineer Alan Nutter has been out of work for nearly four years.

He says he hopes a development like the one in Liverpool could be an opportunity for him.

"It's needed not just for this area, but for the country as well," Alan, 46, told Sky News.

"We shout a lot about jobs and lack of and yet with developments like these you never see any action taken until three or four years' time. I can't wait for that. I need to work now."

Alan split with his wife last year and rarely sees his children.

"I need to get my family back together and try and make it while I've still got working life left in me - make things better not just for myself but for my family."

The proposed development is called Liverpool Waters and would cost around £5bn to build.

But the Government may recommend the plan for a public inquiry because the site falls within a World Heritage Site.

Peel Developments, which is behind the plan, says it may look elsewhere if that happens.

Cllr Joe Anderson, leader of Liverpool City Council, is urging the Communities Secretary Eric Pickles to fast-track the development.

"In 12 months' time I'd like to see preliminary work being carried out on this site and within two years see the first bricks laid.

"We need this site to be developed and jobs will be created, but it has to start soon."