A new report has found a large jump in the number of young Australians who are unemployed or not studying.

The annual How Young People are Faring report looks at education and employment for people aged 15 to 24 years of age.

It found that more than 16 per cent of the nation's teenagers are not working or studying.

Senior researcher with the foundation, Dr Lucas Walsh, says this year's report shows the global financial crisis has hit young people hard.

"Unemployment for teenagers not in full-time education has risen from about 12.2 per cent in 2008, to just over 18 per cent in 2009," he said.

"It's one of the largest annual increases for teenagers over the last two decades."

Dr Walsh says part of the problem is a lack of full-time work for young people and they should consider staying longer at school.

"The research tells us that those who complete year 12 or equivalent will have better opportunities in life," he said.

"So for many students to stay in school, to take some form of study, to take some form of training, will put them in much better stead in later life."