By . Becky Barrow . PUBLISHED: . 09:27 EST, 18 July 2012 . | . UPDATED: . 09:02 EST, 19 July 2012 . Record numbers of pensioners are working, but the number of young people searching for a job for more than six months has also hit an all-time high, official figures revealed yesterday. The figures highlight the problems facing Britain’s troubled labour market as pensioners are forced to keep on working because of a lack of money, but young people cannot find work. Nearly one million pensioners have jobs, but nearly 500,000 under-24s want one but cannot find one, according to the Office for National Statistics. Good and bad: Despite a drop in unemployment the numbers claiming jobseeker's allowance is up, particularly among women . Neil Duncan-Jordan, from the National . Pensioners’ Convention, said: ‘A lot of our members are keen that their . grandchildren can get a job. ‘They think the young deserve a chance, but they worry they are not going to get one. ‘As the state pension age rises, we . will be making the old work for longer but keeping the young on . unemployment benefits, which is a ridiculous way to do things.’ The ONS said there were 929,000 . over-65s working, the largest number since records began 20 years ago. Between March and May, an extra 565 people every day joined Britain’s . army of older workers as baby boomers, born after the end of the Second . World War, realised they did not want – or could not afford – to stop . work. But the ONS figures highlight chronic problems at the other end of the age spectrum. The number of young people between the . age of 16 and 24 who have been looking for a job for more than six . months has jumped by 30 per cent over the past year. Howevwer, in the past quarter it has fallen 10,000 on the quarter. Of those, the number of young people out of education and seeking work is now 724,000 and the number of full time students looking for a job is 299,000. Olympic boost: London jobs market shows an improvement ahead of the Games that has helped boost unemployment figures released today . In total, 489,000 young people have fallen into this trap which is also the highest number since records began in 1992. Paul Brown, director of the youth . charity The Prince’s Trust, said: ‘There are now more long-term . unemployed young people in the UK than ever before, with hundreds of . thousands feeling they will spend their lives on the scrapheap. ‘We need to focus on supporting the most vulnerable young people, who are being pushed to the back of the dole queue. ‘If we invest in young people now, we can save the state billions in benefits and lost productivity.’ The figures come after the Government . scrapped the default retirement age last year which means bosses can no . longer kick out a worker simply because they have reached 65. As the state pension age is increased, . the trend of people working beyond the age of 65 will continue. The . state pension age will reach 67 in 2028, and will continue to rise. Evidence from Portugal, which raised its State pension age from 62 to 65 . for women in 1993, proves that it triggers problems for young people. Research from the Institute for the . Study of Labour concluded: ‘Firms hire approximately one fewer worker . for each older worker that is retained due to the higher mandatory . retirement age. ‘We also find that younger workers . and, in particular, younger women are the demographic groups most . affected by the lower level of total hirings.’ Overall, ministers yesterday welcomed a drop in unemployment, which fell by 65,000 between March and May to 2.58million. But economists said the figure was . skewed by a large drop in London after a hiring spree triggered by . temporary events such as the Olympics and the Diamond Jubilee . celebrations. Secretary of State for Work and Pensions Iain Duncan Smith said: 'The previous Government’s approach to employment programmes meant young people were put onto schemes that took them off the unemployment register, but when they left the schemes many went straight back onto benefits. 'Resetting the clock so that young people weren’t counted as long-term unemployed didn't help them get a job - they were still unemployed whatever the official statistics said. 'We have stopped this nonsense and it is only Liam Byrne who persists with the notion that these young people were in jobs. 'We have challenged the opposition to come clean and stop playing fast and loose with the facts, but no one will be surprised that they haven't responded.'
Unemployment down to 2.58m - lowest since almost 12 months .
But overall number of people, especially women, claiming jobseeker's allowance is up .
Government says figures show economy is taking step in the right direction .
London sees biggest drop in unemployment - mainly because of the Olympics .
By . Becky Barrow . PUBLISHED: . 09:27 EST, 18 July 2012 . | . UPDATED: . 09:02 EST, 19 July 2012 . Record numbers of pensioners are working, but the number of young people searching for a job for more than six months has also hit an all-time high, official figures revealed yesterday. The figures highlight the problems facing Britain’s troubled labour market as pensioners are forced to keep on working because of a lack of money, but young people cannot find work. Nearly one million pensioners have jobs, but nearly 500,000 under-24s want one but cannot find one, according to the Office for National Statistics. Good and bad: Despite a drop in unemployment the numbers claiming jobseeker's allowance is up, particularly among women . Neil Duncan-Jordan, from the National . Pensioners’ Convention, said: ‘A lot of our members are keen that their . grandchildren can get a job. ‘They think the young deserve a chance, but they worry they are not going to get one. ‘As the state pension age rises, we . will be making the old work for longer but keeping the young on . unemployment benefits, which is a ridiculous way to do things.’ The ONS said there were 929,000 . over-65s working, the largest number since records began 20 years ago. Between March and May, an extra 565 people every day joined Britain’s . army of older workers as baby boomers, born after the end of the Second . World War, realised they did not want – or could not afford – to stop . work. But the ONS figures highlight chronic problems at the other end of the age spectrum. The number of young people between the . age of 16 and 24 who have been looking for a job for more than six . months has jumped by 30 per cent over the past year. Howevwer, in the past quarter it has fallen 10,000 on the quarter. Of those, the number of young people out of education and seeking work is now 724,000 and the number of full time students looking for a job is 299,000. Olympic boost: London jobs market shows an improvement ahead of the Games that has helped boost unemployment figures released today . In total, 489,000 young people have fallen into this trap which is also the highest number since records began in 1992. Paul Brown, director of the youth . charity The Prince’s Trust, said: ‘There are now more long-term . unemployed young people in the UK than ever before, with hundreds of . thousands feeling they will spend their lives on the scrapheap. ‘We need to focus on supporting the most vulnerable young people, who are being pushed to the back of the dole queue. ‘If we invest in young people now, we can save the state billions in benefits and lost productivity.’ The figures come after the Government . scrapped the default retirement age last year which means bosses can no . longer kick out a worker simply because they have reached 65. As the state pension age is increased, . the trend of people working beyond the age of 65 will continue. The . state pension age will reach 67 in 2028, and will continue to rise. Evidence from Portugal, which raised its State pension age from 62 to 65 . for women in 1993, proves that it triggers problems for young people. Research from the Institute for the . Study of Labour concluded: ‘Firms hire approximately one fewer worker . for each older worker that is retained due to the higher mandatory . retirement age. ‘We also find that younger workers . and, in particular, younger women are the demographic groups most . affected by the lower level of total hirings.’ Overall, ministers yesterday welcomed a drop in unemployment, which fell by 65,000 between March and May to 2.58million. But economists said the figure was . skewed by a large drop in London after a hiring spree triggered by . temporary events such as the Olympics and the Diamond Jubilee . celebrations. Secretary of State for Work and Pensions Iain Duncan Smith said: 'The previous Government’s approach to employment programmes meant young people were put onto schemes that took them off the unemployment register, but when they left the schemes many went straight back onto benefits. 'Resetting the clock so that young people weren’t counted as long-term unemployed didn't help them get a job - they were still unemployed whatever the official statistics said. 'We have stopped this nonsense and it is only Liam Byrne who persists with the notion that these young people were in jobs. 'We have challenged the opposition to come clean and stop playing fast and loose with the facts, but no one will be surprised that they haven't responded.'
unemployment the numbers claiming jobseeker's allowance is up, particularly among women . Neil afford – to stop . work. But the ONS figures the age spectrum. The number of young people figure was . skewed by a large drop in London events such as the Olympics and the Diamond