The TUC's General Council has called for a bolder response to rising unemployment and a new approach to the labour market in order to meet the "rising challenges of a new economic era".

The General Council, which meets this week at the TUC's Congress in Liverpool, has called for help for companies that want to use short-term working arrangements and temporary lay-offs to survive recession, more help for young unemployed people, extra help for middle wage earners and a new role for the financial sector.

A document from the council states: "The UK economy will now have to focus unremittingly and rapidly on improved infrastructure, skills and productivity if it is to maintain its position as one of the world's leading economies."