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Latest unemployment stats show resources still needed to be directed at tackling joblessness

The state of the British economy is "on a knife edge" following yesterday's unemployment statistics, according to the TUC.

Yesterday, the Office for National Statistics reported the number of people claiming jobseekers allowance fell by 6,300 on the month to 1.63 million. But the number of young people claiming jobseekers allowance fell only very slightly by 300 on the month.

TUC general secretary Brendan Barber said: "Today's figures show the economy is still on a knife edge. While the overall quarterly figures are encouraging, the data suggests there has been sharper rise in unemployment more recently. This shows how vital it is the Government continues to dedicate significant resources to tackling joblessness.

"Government investment to help people off the dole and stimulate the economy has ensured that joblessness has not spiralled out of control in the way it did in earlier recessions. But this is no time for complacency, especially while many - particularly the young - still remain out of work.

"It would be madness to cut the resources dedicated to helping the unemployed, as some are suggesting, when the medicine is only just beginning to make an impact."