Government cuts to job programmes will leave another 120,000 graduates and school leavers out in the cold.
The number of unemployed 18-24-year-olds already stands at 926,000. Labour said the Government were forcing young people to pay the price of their unfair cutbacks.
The number of university places has been reduced by 10,000.
The Government have also scrapped recruitment subsidies for firms who are willing to take on anyone who has been out of work for six months or more.
They have also scrapped the youth guarantee, which promises work, training or an internship to 18-24-year-olds struggling to get a job.
The Government’s Office for Budget Responsibility has warned that Chancellor George Osborne’s moves will put 600,000 jobs at risk.
And a leaked Treasury report has said as many as 1.3million private and public sector jobs could go as a result of the cuts.
There are fears the Tories are repeating the mistakes of the 1980s which saw waves of school leavers condemned to life on benefits.
Shadow work and pensions secretary Yvette Cooper said Labour’s policies helped limit the number of young unemployed.
She added: “By axing the future jobs fund, the youth guarantee and cutting the number of university places, the Con-Dems are wasting the talent of a generation and risk condemning them to long-term unemployment.
“Once again, the Con-Dems have decided to abandon a generation of young people, just as Margaret Thatcher did in the 80s.
“They are cutting jobs in the economy and cutting help for the unemployed at the same time.”