Long term unemployment benefits-Disincentive to work?

An interesting notion has crept up which is not being told so much as to how the extension of long term unemployment benefits is creating a disincentive to work. People tend to start looking for work just weeks before the exhaustion of their benefits. I don’t know if the long term benefits are incentive or disincentive but there was news that people who have taken up work which pays slightly less than the unemployment benefits tends to lose out on the benefits.

Actually in the start the benefits were supposed to last only 26 weeks and by time it was assumed that people will find a job but this recession has created the long term chronically unemployed, who even when they are trying their best are hard pressed to find a job and for these people the extension are now almost 99 weeks. Although I sympathize with them ( I am in the same boat but I am a new passenger), instead of extending the benefits why not the government create a program where these people are legally employed and pay them the same or slightly higher wages. In this sense the money would be well spent and there would not be that many complaints from you know who. Even after this extension, the unemployment situation remains the same then what would happen, another extension. It is the same with the loan modification program that it keeps on going and going, but for how long?