As part of these measures the Work Foundation is urging the Government to create more jobs in the public sector to help fill the gap left by private-sector redundancies.
The Work Foundation also proposes the Government helps employers reduce staff working hours to lower costs, increases unemployment benefits and encourages more young people to complete their education and upgrade their skills.
David Coats, associate director for policy at the organisation, said: "Now, when unemployment is rising fast and many businesses are struggling, is absolutely not the time for 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."
What do experts expect will come up in the budget on Wednesday 22 April?