1. Physically or psychologically disabled people, who are utterly incapable of holding down a job.
2. People who genuinely want a job, and are actively searching, but need benefits in the interim.
3. People who, in BG's sense, would be capable of working, try it from time to time, but are simply marching to the beat of a different drummer.
4. People who are capable of work, and may earn some money in the black economy, but who cynically and with malice aforethought want to bludge on society, and get benefits while they surf or take drugs most of the time.
Categories 1 and 2 should not be an issue for anybody with a shred of empathy or ethics.
Categories 3 and 4 probably blend into each other. I would like government agencies to make a reasonable effort to stamp on category 4 - BG, I don't think we should simply put them in the "too hard basket", and pay them anyway... However, people of right wing persuasions demonise the last two groups, inflate their numbers, and regard them as the scourge which will white-ant society from within...

The reality is that the majority of the unemployed would love to be employed, and that category 3 and 4 represent a minority which has little real economic impact on society.