(Read more: UK unemployment falls, putting rate hike in focus)
The survey of over 2,100 young people also found that the jobless were particularly prone to experiencing mental illness, with 40 percent reporting symptoms including suicidal thoughts, feelings of self-loathing and panic attacks because of the inability to find a job.
There were 1.07 million 16 to 24 year olds in the U.K. who were not in education, employment or training between July and September 2013, according to the most recent data released in November. This was down 19,000 from April to June.
It comes against a backdrop of an improving economic picture in Britain, which saw its unemployment rate fall faster than expected in the three months to October. The headline rate fell to 7.4 percent – its lowest level in four and a half years – and employment rose by 250,000 to a new record high of 30.086 million.
(Read more: UK growth to beat pre-recession peak in 2014: BCC)
Meanwhile, economic growth in the U.K. is expected to beat its pre-recession peak in the second half of next year, according to the British Chambers of Commerce (BCC). The business lobby group upgraded its short-term gross domestic product (GDP) growth forecasts for the country, from 1.3 to 1.4 percent for 2013 and from 2.2 to 2.7 percent for 2014.