What do you do when there simply aren't enough jobs to go around for everybody? Population growth vs. ongoing computerizing and automating in the production of goods,produce and administrative work also means that nonskilled workers hardly find a job at all anymore. The service industry can't compensate for the loss of jobs in factories or agriculture forever.
Service jobs can and have compensated for loss of other jobs. just as factories compensated for the loss of agriculture jobs during the industrial revolution, so service has now done the same. The statist attitude that "we must keep everything the same because that is the way my daddy did it" is a wish by man, but hardly a worthy goal.
As long as a society is prospering, jobs and job seekers will find a happy meeting point. Now you may not be making enough to buy a mercedes, but you sure can buy a VW on it. And as you gain in experience, you will rise in compensation (that is why oldpeople make so much - not because they are greedy).
So what we are looking at is a temporary disequilibrium between jobs and workers. Usually in a time of recession (like now). In those times, people have a safety net - Unemployment Compensation. In its purest form, the UC is funded by a tax on business and so the only role government plays is in holding the money and distributing it (and taking its agent fee). So that is not really a government handout - you earned that as you worked (the tax is based on 2 main factors - the rate of layoffs in your industry and the total payroll of the company).
insisting that we must keep all jobs would mean we would have to retain all manufacturers of Buggy whips, even though there is minimal demand these days. It is something the communists tried (before failing). It never works.
But what about population growth you say? Those extra people do require extra services, so the number of jobs has to increase. More barbers, more hair stylists, chefs, waiters, waitresses, etc. Andbefore slamming all those jobs as "mminimum wage dead end jobs" remember what they really are. They are entry level jobs that are meant to provide work experience to young people so they eventually can get better jobs with more responsibility and experience. Without them, there would be no way to train those people and so the labor pool would eventually retire and die.
capitalism is not perfect. but it is better than anything else tried so far. And it works as long as government allows it to.