The Institute for Employment Studies (IES) has called on the government to create incentives for job-seekers in order to prevent long-term unemployment.
The call came as the institute launches its key employment and skills policy white paper.
It also called for a reduction in youth unemployment through the provision of effective vocational training, supported development of skills, and measures to tackle the ageing demographic.
IES director Nigel Meager said: “Following this year’s general election, whichever party takes office will be faced with a range of pressing policy issues on all fronts.
“However, high unemployment, the changing demands for skills, the need to increase productivity and to reduce expenditure on welfare mean that policies relating to employment and skills will be among the most important.”