The OECD says the Government’s action plan for jobs is working but recommends a series of adjustments “to maximise its potential”.

In its review, the Paris-based organisation said the plan’s focus on private sector-led, export-oriented job creation by getting framework conditions right and continually upgrading the business environment was a “sound approach”.

With 60,000 jobs created in the past year, it noted Ireland had the fastest employment growth rate in the OECD.

The OECD welcomed the focus on building and strengthening links between the domestic SME and multinational sector.

It said the “rigorous” quarterly monitoring and reporting system was a significant positive development in Irish governance.

OECD secretary-general Angel Gurría said: “The plan’s most striking innovation in the Irish public policy context is a coordination mechanism that ensures high-level political buy-in and oversight, whole-of-government engagement and the establishment of quarterly targets underpinned by a robust monitoring system.

“These are important steps towards addressing long-standing gaps that undermine successful policy implementation”.

Minister for Jobs Richard Bruton said: “Given the scale of the jobs challenge we face, it is crucial that we continually learn lessons and improve our efforts in this area.

“That is why we asked the OECD, the globe’s foremost policy think-tank with decades of experience in providing policy recommendations to Governments around the world, to examine the action plan for jobs and provide an assessment of how well it is working and how we can improve things.”