The experts are talking about a "lost generation" as more than one million under-24-year-olds are left in limbo, without a job or a training course that should lead them to one.
Three young people currently in that situation told us how they are dealing with the challenge.
Since leaving college a year ago Zaynah, 24, says she has applied for more than 200 jobs and has never heard back from any of the employers. The six-week charity scheme Spear is helping her build up her confidence.
I had my health condition, eczema, which kind of stopped me from doing what I loved, which was nail art.
I knew I've always wanted to go into makeup. Right now I've just been applying to make-up roles and make-up jobs in retail.
I never worked before... I wasn't very confident at all. I was a very shy girl.
Now I feel like [there is] a big difference from what I was, and now I can be more confident, I feel like I can hold conversations better now.
Back then I couldn't, I didn't know what to speak about and I was very shy.
I think it's because of my lack of experience. I feel like in that way, it's restricting me and I'm not getting jobs.
Some people our age don't know what they want to do, that's what is holding them back.
Luke, 23, who studied product design at Central St Martin's University, has not found a job even after applying for more than 400 positions.
The application process is quite vile. You apply, but then the [online process] wants to know the exact same information somewhere else in a different form.
What you end up having to do is actually go through it again and redo all of it from scratch.
Any normal person coming out of a university degree would think: "Yes, I've got a degree. I am now open to all these starting, junior jobs".
You find out they haven't got the finances or AI has just replaced a whole load of jobs.
The amount of rejections definitely make you depressed. It's humiliating.
I started [claiming] Universal Credit in March last year. Entering into the job centres is really depressing.
I felt a sense of rejection. The fact that everything I've done means nothing, in this day and age it's useless.
It's the Catch-22 situation.
As you enter the job market that you want to go into, you don't have enough experience for that job.
[And] you're overskilled for basic jobs, like stacking shelves... which I've done before. But once you've got that degree you are pushed aside as being overskilled.
I've been rejected for cleaning roles, barista , normal cafe jobs, receptionist in hotels, waiters at restaurants.
I think I've had one interview for a janitor role. They said they'll get back to me… I didn't hear anything.
When Tarun's grandmother died he traveled to India, interrupting the 18-year-old's studies. Since then he has been trying and failing to find work.
I started doing plumbing level two... but I had to go to India so they kicked me out.
I had to go to India because of my grandma's death.
When I came back, I didn't know what to do. It's been like a year. I was looking for a work and education, but I couldn't get anywhere.
I did apply for lots of things. I tried to do jobs as well... but they were like, "you need experience" and I didn't have any experience. I felt trapped. It was like a loop, going over again and again. I just felt lost.
I didn't have anyone to motivate me, so I motivated myself. I was like: I'll start doing rapping. So I wrote songs, I started rapping to entertain myself. That really helped me.
