Youth unemployment in Wales is now the second highest in the whole of the UK, according to new statistics.

New figures show that the number of those out of work is only higher in Merseyside.

Leading think-tank the New Policy Institute found the number of people aged 18 to 24 without work was 14% - more than any other region except Merseyside.

That represents a significant fall since Labour took power in 1997, but it is treble the unemployment rate for Welsh adults from 25 to retirement age.

Focus on Wales

14% of youth jobless 700,000 people below low-income threshold 25,000 children below threshold Only Greece has more in poverty 19% of populace receive some kind of key benefit That was 22% in 1996

As part of a week-long examination at poverty levels, the institute was commissioned by BBC Wales to examine poverty in Wales during a week in which the broadcaster highlights social deprivation nationwide.

As new figures reveal the extent of deprivation across the country, there are calls for Wales to develop its own anti-poverty strategy.

The unemployment findings refer to the official unemployment rates for spring 2001, generated using the UK Government's preferred ILO method.

They show Wales has higher youth unemployment than England, Scotland and Northern Ireland.

Poverty line

The institute has also found that 700,000 in Wales live below the UK Government's low-income threshold of �225 after tax for a couple with two children.

Other research commissioned by the BBC in May 2002, found that the Labour government had kept its key pledge to drive down youth unemployment, which was contained on the back of its novel "pledge cards" in 1997.

Young people may leave to find jobs

And the Welsh Assembly has already rolled out the �3m, four-year Communities First programme to stamp out social deprivation.

It has given money to local partnerships in places like the Dyfi Valley, Machynlleth, which has won grants to create work opportunities for younger people and help older people get to facilities more easily.

But ministers in Cardiff Bay cannot do much more under their devolution settlement with Whitehall.

That could add to fears over the exit of hundreds of young adults from communities across Wales, chasing jobs.

For example, the University of Wales recently warned Anglesey could be drained of 10% of its population by 2016.

Welsh strategy

New Policy Institute director Guy Palmer called for an entirely devolved Welsh anti-poverty strategy.

"Why not follow Scotland's lead and develop a national anti-poverty strategy, against which they subsequently monitor progress?," he said.

"This is a subject where the assembly can potentially make a real difference, but only if it really grapples with the Welsh-specific dimensions of the problem."

In November, 19% of the population was receiving at least one key benefit from the government.

That compares favourably with November, 1996, when 22% were on benefits, but poorly with Scotland's 17% and England's 13%.