Young people who find themselves out of work during the recession might face a lifetime of bad health and unhappiness.

That is according to a new report published by the Princes Trust, which reveals that unemployed young people are less happy and healthy than those in work.

The charity’s YouGov Youth Index also claims that unemployment can lead to addiction, with more than one in ten (11 per cent) of young people saying that unemployment drove them to alcohol or drugs.

Based on interviews with more than 2,000 young people, the research warns that the current recession could leave psychological scars on those who are out of work for an extended period of time.

Chief executive of the Prince’s Trust, Martina Milburn said: "The implications of youth unemployment stretch beyond the dole queue.

"The emotional effects on young people are profound, long-term and can become irreversible. We must act now to prevent a lost generation of young people before it is too late."

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