> will unemployed people stop looking for a job if they receive free money?

That's not quite the question. The question is, will unemployed people look less for a job if they're guaranteed free money even once they get a job, compared to the status quo where they are guaranteed free money (for awhile) that stops once they get a job.

There's also a follow-up question, that is something like "Will people on permanent disability start getting jobs if you stop punishing them by permanently taking away disability payments if they get a job?"