When I was unemployed after my first job out of college, I was making a little over $420/week on unemployment. I ended up taking a manufacturing job where I made $10/hour for a 40hr/week job. So I made less money by working than if I had stayed on unemployment. And that hourly wage was quite a bit higher than minimum wage.
"You could argue that would be better because it leaves it open for someone who needs it more." The generosity! Who could need it more than someone who literally does not have any job?