Supporting yourself (by basically selling your labor) instead of relying on the government is worth something (non-tangible value, obviously) to a lot of people (though I suspect there are few of those people on HN). It makes you feel good (less bad) about your situation and frankly having your existence be dependent on some entity you have nearly zero control over sucks and is stressful.

Obviously on some level it comes down to personal preference but clearly a large subset of the population feels that minimum wage or nearly minimum wage jobs are a good enough deal relative to government benefits that they do them.

The people who I'd personally want to hire are the one's who are gaming the system by getting benefits and working under the table or having a side gig because they clearly know how to optimize for a given set of constraints. Unfortunately those are the ones that aren't in the job market.