This is an interesting idea and surprisingly we have something like this in Australia called work for the dole. It's not exactly the same though, but it's a program aimed at those already collecting government benefits who can work and to get them into the workforce.

You don't get paid the king of hourly rate you're talking about, it's basically a program that you have to participate in if you already collect government benefits and if you want to keep them, you have to do it. The idea is that participants are given training and new skills to go out and get a job.

Creating government jobs seems rather unrealistically expensive, such a scheme would never be passed. It would be cheaper to create government supported training programs.