Having been on unemployment here in the Netherlands, I can say this: Waiting for people who haven't been looking for work to look for work is not going to... uhm... work. If you want people to get work, you need to have a bridge between employers and the jobless. I am very employable, but despise searching for jobs.
What worked for me was a newsletter from the unemployment agency to potential employers, listing candidates looking for work. The 'recruiters' knew my strengths and weaknesses, and could use that to advantage. Importantly, employers started calling me, instead of the other way around. Had a few meet-ups, still got turned down by a few, turned one down myself, and accepted another. So now I'm gainfully employed and posting on Slashdot.
Mind you, I wasn't even remotely in danger of being homeless, especially with the Netherlands' good unemployment system, and when that runs out welfare. If I were homeless, I'd not be employable, which would make forcing me to look for a job fruitless.