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Unintended consquences - Why we're not hiring

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27 May 2012. Whilst the youth wage subsidy acts as an incentive to hire once its implemented, before then it actually acts as an incentive to delay new projects and delay hiring. I'm not just talking about projects which would only be financially viable with the youth wage subsidy, but even those that aren't.

We're an entrepeneurial little firm, with a project we could implement even without the youth wage subsidy, but we're not doing so as it may jeopardise our ability to qualify for the youth wage subsidy.

The youth wage subsidy is likely to be implemented so that.. applies only to employees in excess of the current number that are hired (according to President Zuma's reply to a parliamentary question on the youth wage subsidy). The President wasn't clear about what date the word "current" refers to, but I'd imagine that it means from date of the legislation being implemented, in which case employees that we hire before it's implemented wouldn't count for the subsidy.


...for now we'll focus on improving the productivity of our existing employees. We'll start hiring again once the youth wage subsidy is implemented (or it's confirmed that it wont be implemented).

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