The Foundation has called for a£23bn package of measures to make the ‘budget for jobs’ a reality.
Associate director David Coats said: "Now, when unemployment is rising fast and many businesses are struggling, is absolutely not the time for the government to be thinking about cutting back.
"The Chancellor must have the courage to do the right thing for the economy and for jobs and implement a substantial stimulus package."
The Work Foundation proposals include:
A public works programme: investing in ‘shovel ready’ infrastructure projects which can enhance the level of growth - especially programmes ready to be rolled out immediately in housing, education and ‘green jobs’
A short-time working scheme: helping keep people in work by enabling employers to reduce working hours and partially compensating workers through the benefits system for the fall in income
High quality job search support and increased benefit levels: maintaining the quality of service offered by Job Centre Plus; pressing ahead with welfare reform (but revising the scale of ambition); and increasing the level of JobSeekers’ Allowance by at least£10 per week
Creating more public sector employment: to help fill the gap left by declining private sector employment
Specific action on youth unemployment: encouraging young people to continue in education and upgrade their skills, and expanding the range of further and higher education places where necessary
A further targeted fiscal boost: through an increase in tax credits for low paid families, effectively putting extra money in the hands of those most likely to spend it