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In their report, “Persistence of High Unemployment: What Risks? What Policies?,” the OECD said that continuing federal unemployment benefits, set to expire in January 2012, could prevent the unemployed from entering other benefit systems –including welfare and disability programs- which they would be less likely to exit.
“In the meantime benefits should be made conditional on recipients satisfying job-search requirements and, where benefits are relatively high, they could be made declining with duration,” the OECD states.
Any extension of jobless benefits needs to be coupled with incentives and training measures to help people get back to work lest the unemployed “lapse into dependency,” according to the report. Career skills retraining programs to end joblessness, has also been recommended as recent as October 10, 2010, by Washington, D.C. advocacy organization, the Economic Policy Institute.