Bradford faces tough choices if it is to reduce its "worryingly high" levels of economic activity and the number of jobless who receive incapacity benefit, according to an influential think tank.

Despite steady growth in employment over the past decade, Northern cities like Bradford had significant numbers of people out of work, said the Institute for Public Policy Research (IPPR).

The Bradford district has 25,000 people on incapacity benefit and 8,879 people unemployed (3.1 per cent).

The IPPR's northern research director John Adams said Jobcentre Plus needed extra capacity to deliver front-line support services. He said priority needed to be given to services which worked, such as the Pathways to Work for sick and disabled, rather than the New Deal for 50 plus, which did not.

Mr Adams said that with only half those with disabilities or the lowest qualified in work in cities like Bradford the Government could only reach its full employment target with better personal advice.

"Full employment has not yet been achieved," said Mr Adams.

"With only half of people with disabilities in work, the Department for Work and Pensions (DWP) has to commit more resources to help bring disadvantaged groups into work.

"Social justice demands that millions of people who are currently marginalised, excluded and alienated need to be brought back into work. Raising employment among disadvantaged groups should remain the Government's labour market priority. It is a difficult challenge, but we would reap enormous rewards in tackling poverty."

Mr Adams said Bradford's jobless total was also boosted because ethnic minority communities tended to have much higher unemployment rates.

The IPPR has presented its report to the DWP, which said in a statement: "Helping people off incapacity benefits and back to work is a key priority. Most people on benefits say they want and expect to work but the experience of ill health can vary.

"We know that tailored packages of support is effective. We hope people will build on this and avoid artificial and rigid barriers which could hinder our efforts."