ur market deregulation is considered a politically impossible or unpopular move. Instead, more targeted interventions known as Active Labour Market Policies (ALMPs), can be adopted. ALMPs attempt to lower barriers to entry into the labour market. In South Africa the youth wage subsidy is but one example that could fall under ALMPs interventions, but this can be expanded to include exemption from labour market regulations, subsidies and/or credits to support young people to fund their job search, leveraging a development finance solution.

8.5 Education and Training Interventions
Training systems failures occurs when young workers and job seekers are unaware of the skills required by the expanding sectors of the economy. As with other kinds of market failure, the absence of information is the primary reason for asymmetry. McCarthy (2008) notes that ninety-four percent of young people that have completed a university degree in South Africa are employed or are continuing with their studies. The education analysis shows that graduates in law, physical sciences, business sciences, and engineering have the highest chances of securing employment. The faculties that show that their qualifications lead to fewer job opportunities are the fine arts and humanities, social sciences and health sciences.
The minimum requirement from employers in developing countries is basic literacy and numeracy (Godfrey, 2003). Reading literacy is particularly important in the labour market. Godfrey (2003) draws attention to the OECD’s 2000 report from its International Literacy Survey. The survey concludes that in the period 1994-1998, across 22 participating countries, people with higher levels of reading literacy are more likely to be employed and on average have higher wages than those with lower literacy levels. It can be concluded from this report and other supporting literature that the greatest variable that can positively influence the future employment prospects of young people is keeping them in school (Godfrey, 2003; McCarthy, 2008; Bhorat, 2001).
This raises important policy considerations that should be aimed at ensuring univers