NEW figures reveal a large increase in young people in Colchester out of work.

The total of 18 to 24-year-olds claiming jobseekers’ allowance has risen to 970, from 895 in October.

In total, 3,238 people in Colchester are claiming out-of-work benefits.

Alf Mullins, who runs the Greenstead-based employment support centre, Signpost, said the number of young people seeking its help had risen noticeably over the past six months.

He said: “They have been one of the groups hardest hit by the economic situation and cuts.

“Many are finding themselves in a Catch-22 situation. Employers are looking for people with experience. But there is no way for young people to get experience in the first place. The number of young unemployed has increased nationally and that is reflected in Colchester.”

Prime Minister David Cameron says schemes introduced under the previous government were ineffective.

He has promised new initiaives to tackle the problem.

But Nick Barlow, Colchester councillor responsible for economic development, culture and tourism, said he was disappointed the Future Jobs Fund, which helped give youngsters temporary work placements, had been scrapped by the Government.

Mr Barlow said: “The programme was very successful in Colchester.

“We helped around 80 young people find placements and about 65 per cent of them secured long-term employment as a result. Unfortunately, the project was funded by the Government and they couldn’t afford to continue funding it.’’ Mr Barlow added: “At the moment, we are trying to attract investment to Colchester, in order to improve job prospects and support businesses, particularly small companies, as much as possible.

“But we can’t change the national economy and have to do what we can at a local level.”