I have seen people become cynical in the face of consistent joblessness despite many applications. It worries me because it could cause permanent negative attitudinal shift with bright people -- the early parts of a career can be very formative, and it's not good if, instead of a good, supportive and developmental manager at a stable company, people feel stuck with bad bosses or cannot escape the tyranny of unemployment.

By the way, while we're talking about fixing unemployment, I'm hiring a system administrator just south of Seattle, for my manufacturing company in the green space. Smart folks who enjoy a happy working environment and solving interesting customer-facing problems are welcome to get in touch with me.