I could not read the original news. I see different effects of the cost reduction: a) reduced cost of hiring would let employers hire and fire easy--- this should generate more flexibility. b) Hiring would take place based on demand for real work/ real production--- the signals would flow more smoothly than dictated by a rigid/secured hire and fire framework The effects discussed in this post looks very straightforward and I think it is important for one to appreciate that some of the policy proposals are perhaps response to the severity of the current situation and hence reflect good intuition.