This should sort out the worries about newstart allowances.
Pay a newstart at Government expense for a max period of 6 Months to claiments who have never worked.
Set up a fund similar to medicare whereby all employed people and business owners pay into the fund at a % of gross salary, register the payments to the contributer. Pay out unemployment from each persons fund if required, if there are surplus funds upon retirement, pay the amount into the super fund of the individual.
In this way most individuals would actually be motivated to "save for retirement" and remain employed as much as possible.
A lot of the expenses surrounding administration and support of the unemployed would be saved as well.
IMO
