The Republic is one of the few states among the 29 members of the Organisation for Economic Co-Operation and Development (OECD) which has implemented real reforms to reduce unemployment, according to the organisation's latest Economic Outlook.

It repeats assertions first set out in the draft version of the report in May. It contends that while productivity has improved greatly in this State, much of our remarkable performance has been attributable to temporary factors which have boosted the supply of additional labour. And further flows of immigrants - native or otherwise - may be affected by rising house prices.

More controversially, it also recommends either the phasing out of mortgage tax relief, as in Britain, or the re-introduction of income tax on the imputed - or potential - rent from residences, as in Switzerland, and the reintroduction of a residential property tax. Such measures, with "appropriately structured capital gains tax rates which would become higher as properties are held longer" would "increase opportunity costs of inefficient land use [and] reinforce the incentive to property owners to use their land more efficiently".

According to the OECD most of the countries posting falls in unemployment and improved labour market conditions have been amongst the most determined in pursuing the OECD's Jobs Strategy. This is due to changes in benefits, taxes on labour and social partnership.