Unions and business representatives are backing Labour's new election policy.
The Labour Party launched its re-election campaign yesterday by pledging $311 million for its flexi-wage scheme.
It'll give businesses a subsidy of between $7500 and $22,000 to get people off the benefit.
BusinessNZ CEO Kirk Hope told Francesca Rudkin that they are pleased to see the major parties, particularly Labour, talking about jobs and business so far in their policy launches.
He says that, by and large, this scheme is a good policy.
"It is hard to assess how effective one or other policy would be without seeing the whole economic plan and it's something they'd need to work on, particular with the business community."
Employers and Manufacturers Association CEO Brett O'Riley says while it's a tough time for businesses, sectors like manufacturing and construction are looking to take on workers.
The Council of Trade Unions says Labour's plan will provide some stability for working people in the months ahead.
CTU president Richard Wagstaff says we know the economic headwinds are going to be with us for a while and it's crucial to keep people in work.
"We're glad to see the Government putting its money where its mouth is. It made plenty of statements about unemployment has spiraled out of control, we were wondering what they were going to do about it."
Employers and Manufacturers Association CEO Brett O'Riley says extending the scheme to encourage people into self-employment and entrepreneurship is a good move.
"There are definitely some very good opportunities for using online for example for people to set up their business, and it's great to see that recognised."