The Organization for Economic Co-operation and Development reports that governments have been more effective at bringing in reforms to raise labour productivity than at helping increase the number of people in work.

The conclusion comes in a progress report on action taken over the past year to enhance economic growth in each of the 30 member countries of the OECD. The report assesses the extent to which governments have followed the policy recommendations it published a year ago.

By using a number of “benchmark” indicators ranging from labour costs and levels of educational attainment to obstacles to business start-ups and foreign direct investment, last year’s report identified areas of weakness and outlined policy priorities for each country. This year’s reports shows mixed results in dealing with these weaknesses.

To raise labour productivity, many governments have recently introduced, or initiated, laws to ease restrictions on business activity and boost competition, it notes. In the European Union, for instance, a draft directive to allow businesses to sell their services in any other EU country is currently under negotiation. In Japan, the competition law has been reinforced. In Germany, nation-wide educational standards have been agreed in some fields while most other countries identified as needing to strengthen some aspect of their education system are taking relevant measures.

But there has been less progress in increasing the number of people in the workforce, identified in the last report as a priority for many OECD countries. Reforms to remove tax incentives for retiring early have been limited while legislators have shown little enthusiasm for easing employment protection in those countries where it is seen to hamper job creation. However, the report notes greater progress in reforming sickness and disability benefits in Australia, Britain, Denmark, Hungary, Netherlands, Norway, Sweden and Switzerland.