Ed Miliband has called for a "more responsible capitalism" following news that the number of unemployed young people hit the one million mark.

The Labour leader first targeted bad businesses during Labour's September conference and returned to the theme today in a speech at the Social Market Foundation thinktank.

While reaction to his conference speech was muted, sources close to Miliband stood by his words.

He returned to those themes on Thursday morning, saying "the system is not working for the 99%" and that themes of his conference speech had since been echoed by Bob Diamond and the Archbishop of Canterbury.

After the rise in unemployment and the Bank of England downgraded the UK's growth forecast, the Labour leader repeated calls for the government to "change course", saying "I believe we have reached an economic turning point".

"Don't believe those who would tell you any change in course will make us like Greece. As the managing director of the International Monetary Fund said, the markets are as worried about the lack of growth in the economy as they are about debt levels", he said.

"The argument for a new, more responsible capitalism is hard-headed, not soft-hearted. It is based on paying our way in the world, building long-term wealth and delivering rising living standards for the majority of people."

"Knowing what we know now, about our economy, about growth prospects, it would be the height of irresponsibility for the Government to carry on regardless.

"I urge David Cameron: change course now. Change course for the sake of our young people. Change course for the sake of our country."

Labour have also questioned the government's borrowing forecasts, with shadow chief secretary to the Treasury Rachel Reeves claiming they could end up borrowing £100 more than George Osborne planned over this parliament.