One in five Britons in now a NEET - not in employment, education or training, finds a government survey.
Their numbers have passed one million for the first time since comparable records began 19 years ago.
Figures showed that more than a fifth of 18 to 24-year-olds are now a NEET.
This figure of 1,013,000 is an increase of 129,000 on the same time last year, the Daily Mail reported.
In addition, one in seven 16 to 18-year-olds, some 267,000, is also on the dole.
Overall, the number of unemployed in Britain has risen to 2.62 million, leading experts to warn about a 'lost generation' of youth.
They blamed it on the tough job market and restricted access to education caused by budget cuts.