WoF: You've clearly never been unemployed. Even the poorest, least educated people will refuse a job that they consider 'beneath' them. Hell, I had massive arguments with the employment counsellor who kept trying to push me to apply for truck driving jobs.
The other issue is that long term unemployment is very unattractive to prospective employers. At least this gives people something to write on their resumes and, if it's a well designed system, new skills and the potential to make contact and find a job on their own.
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Hell, no! I've got this employment thing worked out! I'm stupid, inexperienced, and ugly. I'm a shoe in for everything!
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