Indeed it would be preferable, but I'd still have an issue with giving certain private corporations reduced labour & not others - it essentially gives them a market advantage (if it didn't, they wouldn't do it).
I completely agree with what you are saying in principle but when considering the long term unemployed, or youngsters that have left school for a while and have no work experience at all, someone has to take a chance on these people and give them a go.
Unfortunately in the current state of the jobs market that is very unlikely, so in this instance, reducing labour costs to corporations/businesses may be the enticement to give these people a chance.