Teachers are warning of a "lost generation" of pupils, with seven out of 10 concerned that their students will end up on benefits.
The findings, by youth charity The Prince's Trust , highlight the devastating impact of the recessionon teachers and pupils across England.
More than half (54%) of teachers expect more pupils will end up on the dole than ever before due to rising levels of unemployment.
And more than one in three feel their efforts are "in vain".
The survey also found almost half of secondary school teachers regularly witness pupils suffering from malnutrition with increasing numbers of pupils coming into school hungry, dirty and struggling to concentrate since the recession.
Some teachers even admitted they often buy food for struggling pupils from their own wages.
Ginny Lunn, director of policy and strategy at The Prince's Trust, said: "The recession is already damaging the hopes of more than a million young people who are struggling to find a job.
"Now young people in schools are next in line. We cannot allow them to become the next victims of this recession. With the right support, it is possible for pupils to achieve their ambitions, rather than becoming a 'lost generation'.
"Government, charities and employers must work with teachers now to support vulnerable young people giving them the skills they need to find a job in the future."
Teacher Lynda Harris runs a course at Feltham Community College, in west London, helping young people develop the skills they need to get a job.
She told Sky News that pupils are suffering because money is tight at home.
She said: "It is quite shocking because young people do regularly come into school and haven't eaten or had their breakfast, and also haven't got their equipment and stuff.
"But because they're part of our XL Prince's Trust programme we have a breakfast club so they're fortunate enough to come in and have breakfast, collect their equipment and get the support that they need through us."
One teacher told researchers they had seen "scavenger pupils finishing off scraps, as they haven't eaten enough", while another said some pupils came into school "to have food and get warm".
A third said: "One student came into school wearing a soaking wet uniform. He washed it in the morning as his mother had failed to do so due to being inebriated. He didn't know how to use the drier so came in wet."
Sky News spoke to mother-of-six Anne Lloyd from Bracknell, Berkshire, who admits she is concerned about her children's prospects for the future.
Despite working two part-time jobs, she increasingly relies on the local food bank to feed them.
She said: "One of my children has got holes in their school shoes, and it's like do they want a friend to come around for tea or do they want a pair of school shoes. It is a constant worry."
The Prince's Trust insists more focus on support and training is essential to stop another generation suffering because of the recession.
The findings, based on interviews with 515 secondary school teachers, come the day after it was announced the UK had fallen back into recession .
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