The MP for Foyle said young adults in the city in particular were severely affected by what she described as a growing unemployment crisis.
According to the latest labor market statistics, the employment rate (the percentage of working-age adults with a job) in the north has fallen to 69.3%, the lowest in the UK.
The rate in Derry is only 68.0%. The UK rate is 75.0%.
Ms McLaughlin said: “We are in a growing unemployment crisis. The employment rate in the north of Ireland shows a serious and worsening performance gap compared to Great Britain, but the situation is particularly bad in Derry.
“This is a particularly serious and damaging problem for our young adults. Figures from the UK show that the burden falls disproportionately on young adults, with more than 60% of the number of people employed falling among those under 25. Northern Ireland also has a much higher proportion of young adults without education, employment or training than in Britain. “
The SDLP MP said there was a danger of losing long-term unemployed youth.
“This is why I addressed the Assembly this week, calling on the Minister of Communities of Sinn Féin to make faster progress in setting up the Job Start program to offer work placements to young adults. We have to do more and do it quickly, otherwise we will fail in our young adults. ”