The reason here is that the interests of employers are misaligned with society's interests at large.
Individual employers are clearly demonstrating that they have a disincentive, rational or otherwise, from hiring potential employees with large gaps in their resumes. This obviously will tend to feed back on itself, making long gaps longer and unemployable applicants even more unemployable as time passes.
Society, on the other hand, has both economic and humanitarian interests in minimizing the number of unemployable individuals. Since the market has inadvertently began creating a large pool of these unemployable people, and it shows no sign of changing in the short to mid term, then society can and should apply non-market forces to advancing its interests.
Honestly, I'm not sure if direct employment is the best solution; I'd probably prefer some variation on tax incentives for employers. But reaching for the hammer, as you put it, is not always a knee-jerk reaction and seems like a pretty rational instinct in this situation.
Individual employers are clearly demonstrating that they have a disincentive, rational or otherwise, from hiring potential employees with large gaps in their resumes. This obviously will tend to feed back on itself, making long gaps longer and unemployable applicants even more unemployable as time passes.
Society, on the other hand, has both economic and humanitarian interests in minimizing the number of unemployable individuals. Since the market has inadvertently began creating a large pool of these unemployable people, and it shows no sign of changing in the short to mid term, then society can and should apply non-market forces to advancing its interests.
Honestly, I'm not sure if direct employment is the best solution; I'd probably prefer some variation on tax incentives for employers. But reaching for the hammer, as you put it, is not always a knee-jerk reaction and seems like a pretty rational instinct in this situation.