Cut jobless benefit entitlement, says OECD

The Netherlands should cut the length of time people can claim unemployment benefit (ww) to encourage the jobless to find new work, the Paris based OECD organisation said on Thursday.

In addition, the Netherlands would be sensible to cut its programme of mortgage tax relief, which would allow income tax to be reduced, the organisation said.
The recommendations are contained in a report into the growth prospects of western economies.
Although some improvements have been made, ’employment protection legislation remains overly strict, restrictions on shop opening hours continue to hinder competitive pressures, and excessive unemployment benefit duration undermines the job-search incentives of the long-term employed,’ the organisation says.
‘The global recession has left deep scars,’ said OECD secretary general Angel Gurría. ‘The only way to begin healing them is by taking effective action now to help our economies recover their lost potential.’