The Organisation for Economic Co-operation and Development (OECD) criticises governments of developed economies for not doing enough to help people move into employment in a new report, Boosting Jobs and Incomes, which it published yesterday.

In an analysis of labour markets published in tandem with that report, the OECD cites Ireland as an example of countries that have been successful in pursuing labour market reform.

The OECD says bad regulation, poor job search support and a lack of skills are preventing many people on welfare from taking jobs. It urges governments to gear training and education policies and welfare and taxation systems towards encouraging employment. It also recommends that legislation to protect job security does not "undermine the dynamism of the labour market or lead to discrimination in hiring and firing".

But while acknowledging strong opposition to reforms, it says this is no excuse for inaction. "Countries that fail to reform face the prospect of continued weak employment performance, which in turn will hamper improvements in living standards. But the successes achieved by some countries over the past decade show what can be achieved if there is the political will to reform," OECD secretary-general Angel Gurria said yesterday.