Jobcentres should be split up, with their employment arms forced to compete against private sector and voluntary providers and the remaining services rebranded as Citizen Support, a think-tank has recommended.
Under the plan, the employment services arm would be mutualised, while the remaining part of Jobcentre Plus would be expanded and renamed to reduce the "stigma" attached to it.
The right-of-centre Policy Exchange said just over a third (36%) of people using jobcentres find sustained work, with many finding themselves in and out of employment largely due to having barriers to work which are not fully dealt with.
The report said the Government's welfare reforms have improved matters, but there is still too much duplication and inefficiency in the system.
More top news
People should only be allowed to move freely within the EU if they have a job waiting for them, the Home Secretary has said.
A 62-year-old woman has been found alive more than a week after she vanished while on a hiking trip.
The first African American actor to play the lead role in Les Misérables on Broadway has died, aged 21.