In the US somewhere between 10% and 20% of the working age adults are out of work and there are no realistic prospects of this changing any time soon. Many other parts of the world have way higher unemployment rates.
How it works now
To the unemployed individual this is devastating. At first, for the lucky few, there is unemployment insurance providing some fraction of the person’s former wage. After unemployment insurance runs out there is some form of charity, either from the community of from the family.
The unemployed person has had a change of status and in most cases a sever change in the amount of available resources, but these unfortunates do not go away. Many have families dependent on them for support and these support needs continue whether or not the person is working. Someone has to pay the rent and supply the food and other necessities of life.
In times of near full employment the unemployment insurance system works relatively well. The newly unemployed gets enough to get by but not so much as to be too comfortable while finding a new job. Jobs are easy to find and the earnest applicant finds one quickly with only a small disruption to life.
In times like these unemployment insurance really does not work at all. For every available job there are hundreds of over qualified applicants. The government keeps extending the unemployment insurance period, but nothing changes to make finding employment more likely. The working resent those looking for work and those looking can clearly see that the system is not treating them fairly.