The authors found that there are one and a half million people out of work and a further million stuck in part-time jobs who could do more hours or fulltime hours but cannot find them.
The report also took a swipe at businesses who are “getting away” with insisting they could not recruit local people, claiming their assertions are unfounded.
“Employers often claim that they cannot find UK-born workers, but there are certainly cases where changes to working times and methods could expand the pool of local workers available to them,” authors write.
Chairman of the think-tank, Lord Green of Deddington, added: “For far too long employers have got away with claiming that they cannot find British workers.
“The truth is that they are simply not adjusting their working practices to meet the genuine needs of British workers because they have an unlimited number of EU workers on tap.