Trust Prince of adolescents suffer from sleep disorders, depression and panic attacks.
Charity Director said, young people in Wales have been particularly hard hit by the recession.
The Government said young people not in education, employment or training are a priority.
index of the Prince's trust youth Macquarie was based on interviews with 2170 16-p-25 years of age throughout the UK, 106 of them in Wales.
This is the third year of charity in such report and gauge happiness in everything from family life to physical and emotional health.
Macquarie Group Foundation is funding the research that was carried out by YouGov.
continue reading basic storyin Wales, we suffered quite the recession and unemployment among youth "End quote Rick Prince's trust Cymru Director Libbey found 48% of unemployed respondents claim they lack job led to problems such as panic attacks, self-harm and self-loathing.
Director of the Prince's trust in Wales Rick Libbey told BBC Radio Wales: "what we tried to make it compile down in Wales, what does this tell us.
"These young people work suffer from a variety of mental disorders.
?In Wales we have suffered very badly with recession and unemployment among youth.
"Unemployment seems to be hit hardest of all adolescents and approximately one in four young people in Wales suffer from insomnia.
12-year high
"We discovered that one of the five most felt depressed or all time and about one fifth of them suffered panic at different times in their lives."
This study should report, published earlier this month, demonstrating long-term youth unemployment in Wales at 12-year high.
continue reading basic storyaddressing young people not in education, employment or training is one of the main priorities of the Government of the Welsh Assembly Government "End quote a spokesperson of the Welsh Assembly Government, he said that the number of 16-to-24 years of age on employment allowance (JSA) for 12 months or more has increased nearly fivefold since the recession.
Julie white, head of the Macquarie Group Foundation funded study says: "the research shows how the Prince's trust schemes that help young people at work, you can directly address the emotional health of unemployed people.
The study showed that young people not in employment, education or training-known as Neets-more frequently than in the work or education "lack a sense of belonging."
The representative of the Government Assembly says: "Although we can't comment on the findings of the report, we have not been able to study in detail, consider young people not in education, employment or training is one of the main priorities of the Welsh Assembly Government.
"We fully recognize the importance of preventing mental health problems and promote positive mental health.
"Our focus is on improving the health and well-being, aiming to reduce the number of people experiencing mental health problems, but where they occur, services to support people with GPs and community-based mental health brigades and access specialist in-patient care where appropriate."
The representative of the Department for work and pensions announced 2011 will see the new work programme which will support people taking they should move to create jobs and continue working.
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