In an effort to enhance the labour absorption rate of the economy, the Plan advocates a tax subsidy to employers to reduce the initial cost of employing a young labour-market entrant, and facilitating an agreement with labour unions on entry level wages. The Plan goes further in suggesting a subsidy to the placement sector to secure, prepare and place matric graduates in work opportunities.
It is also proposed that dismissal procedures for performance or misconduct be simplified, and that compliance requirements for employment equity and skills development rules for small companies be simplified, or even done away with.