As technology progresses, we are going to need fewer and fewer workers. There are always going to be substantial numbers of people who cannot get jobs.
At the same time, there are people who do not desire to fit into the capitalist paradigm and those who don't. Call them lazy if you like, but there are people who detest the idea of 9-5, working to someone else's priorities, or something else about a job.
Lots of these people are have jobs because they can't survive without them and are doing a lousy, or at least uninspired, job. They are taking work opportunities away from those who feel differently.
Because there are lots of people who like to work. They like being on a team. They like participating in something big. They want more stuff. There are a million reasons. That's where capitalism comes from. And lots of them do not have jobs because some less motivated person was forced to take it.
This disproportionately affects young people because old people, who often lose their motivation as time goes on, are entrenched.
It's my opinion that we should change the idea of welfare to the idea of 'base support' and make it available to everyone. The goal would be to help people who are unmotivated from taking jobs away from those who want them.
Base support would provide a decent life but to avoid civil unrest and other problems, we need to provide activities to avoid boredom and to provide ways for people to gain some luxuries. (Have and have not is a dangerous thing.)
One of the ways I would deal with this is by vastly increasing the amount of educational opportunities and then changing the general concept of society to consider failing to attend university to be a sign of weakness.
Nobody would be able to flunk out (we don't need to ration school seats because we can create infinite amounts of them; they are not connected to market cycles) and for most people it would mainly be entertainment. But, this would also make it so that nobody was excluded. There would be some people who would never have had any education otherwise that would be geniuses and accomplish huge things.
And, in the workforce, people who don't like it would not be taking up space, doing a crappy job, demotivating others, etc. Everyone who was working would be there because they want to accomplish stuff. Productivity and profits would skyrocket. Overall happiness would increase. People would be able to live life in a way that suits their personality and skills.