Youth unemployment in the UK has reached "emergency point" and could cost as much as £28bn by 2022, an inquiry led by Labour MP David Miliband has warned.
A report by the Commission on Youth Unemployment, published on Monday, says youth unemployment is the biggest challenge facing Britain and a "time bomb" for the public finances.
One in five young people are not in employment, education or training and a quarter of a million have been unemployed for over a year, according to official figures.
The report identifies 600 hotspots across Britain where youth unemployment has reached emergency levels.
The hotpots, where the proportion of young people claiming Jobseekers Allowance is at least double the national average, include major hubs such as Birmingham, Manchester and Liverpool, as well as Coventry, Derby, Hartlepool, Glasgow and Swindon.
The research, commissioned by the Association of Chief Executives of Voluntary Organisations ( ACEVO ), estimates current levels of youth unemployment will cost the public purse at least £4.8bn in 2012 and a potential £28bn by 2022.
Mr Milband , chair of the corss-party commission and brother of Labour leader Ed, told Sky News: "The recession has hit young people seeking work harder than over 25s and the failure to generate growth in 2011 meant although the economy was pretty flat, youth unemployment numbers went up."
The report makes a series of recommendations for addressing the problem, including a scheme whereby young people in work mentor their contemporaries who are out of work.
Mr Miliband added: "Britain faces a youth unemployment emergency. This is a crisis we cannot afford.
"Government have set the right goal - abolishing long-term youth unemployment - but we will need big change if we are to achieve it."
The findings coincide with start of this year's National Apprenticeship Week and came as it was revealed that the Co-operative Group has received 64,000 internet enquiries from under-25s for its apprenticeship scheme since it began in May last year.
The firm, which has businesses in food, financial services, pharmacy, funerals and travel, recruited 400 apprentices last year and has doubled the number to 800 this year.
But there is still a huge gap between demand and supply.
Peter Marks, chief executive of the Co-op Group, said: "Youth unemployment is spiralling with over one million 16 to 25-year-olds out of work.
"Coupled with the unpredictable economic future, it's no surprise that some young people feel unsupported and demotivated.
"We believe businesses have a real responsibility to open doors for young people by giving them opportunities to gain new skills, knowledge and experience so that together we can build a strong and successful future for young people and our country."
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