Youth unemployment reached a record high in the last quarter, as UK unemployment shot up by 129,000, according to the Office for National Statistics (ONS).

The number of people aged 16-24 who are out of work hit 1.02 million between July and September, says the ONS.

The overall unemployment rate increased to 8.3 per cent over the last quarter – the highest it has been since 1996. The number of those out of work is now at its highest since 1994.

Brendan Barber, general secretary for the TUC, blames the government for the rise in youth unemployment.

'Government plans to offer cut-price work experience are a woefully inadequate response. The prime minister must stop the risk of losing a generation to unemployment and under achievement by guaranteeing a job or high quality training to every young person out of work for six months.'

Delroy Corinaldi, director of external affairs for the Consumer Credit Counselling Service, says: 'With youth unemployment rising, an increasing number of under-25s are struggling to make ends meet. I am concerned that many young people who are out of work will fall into debt in the coming months.'

The number of unemployed people has risen in all areas of the UK except the East Midlands where it stayed the same, and in the North West and Northern Ireland where the number fell.

Reflecting the rise in unemployment figures, Jobseeker's Allowance claimants rose by 5,300 to 1.6 million in October.

This was written for our sister website, Moneywise