OECD calls for reforms to close productivity gap

The UK needs to reform its labour market to close the productivity gap between it and the world’s other leading economies, the Organisation for Economic Co-operation and Development said yesterday.

The OECD laid out a series of reforms that it said will help the UK boost productivity.

They include reforming disability benefits and putting more young people in vocational training.

Cutting the number of people receiving disability-related benefits, which in the UK make up a higher proportion of the population than in other countries would help, it said.

A government scheme to encourage disabled people to return to work should be made compulsory for people whose medical conditions are not severe, the OECD added.

It also urged the government to give young people better access to vocational training at the upper-secondary level and to expand the Modern Apprenticeship scheme and adult training.


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