That training scheme you mention above was probably the best one devised. When I relocated to country Victoria from Sydney, I met some people who were on that scheme. There was a chorus of approval from all concerned. Not only did it keep them engaged (these were all long termers), they got paid a half decent wage, gained useful training and some of them ended up with a job after the completion of the scheme,which lasted 6 months from memory.
Being long term unemployed, that course would have had a positive impact on their self-esteem and mental health. Paul Keating's brainchild with help from the public service,no doubt.