I recently graduated from university, and to be completely honest, with a masters degree in maths/physics from a top university I felt that I was above menial work. I don't think it makes me a snob (I worked for 6 years at ASDA whilst at college/uni), I just don't see why I should sell myself short and accept a job I am clearly capable of doing better than. I didn't want to lower my chances of getting a graduate level job because of a rubbish minimum wage job.
The graduate job applications are an absolute nightmare, It was pretty much a full time job, and I genuinely don't think I would've been able to give myself the best chance of getting a job if I were working.
I don't think older people have any idea how time consuming graduate job hunting is. To give you a rough idea, for each job I applied to I probably spent a full day initially researching the company, then another full day filling out the application form, and answering all the motivation/competency questions (the average was probably 5 questions, 300 word limit for each) Then there's the online tests (one of the big 4 made me do 5 separate tests). When I passed these stages I spent maybe 3 or 4 full days researching the company/preparing for the interview. Then another day or two revising everything before my assessment day/second interview. I did about 20 graduate applications, and got to the interview stage of most.
Also, I think there are a lot of snobby recruiters out there, and I think that a lot of the prestigious companies would be put off from hiring someone who graduated from uni then went to work at Starbucks or Morrisons. Yes being unemployed looks worse, but if you do some charity work/travelling like I did, and sell it as a gap year it looks a lot better.
Before I get any abuse, In my time unemployed I'm not claiming JSA or any benefits - I'm doing a bit of maths tutoring, and I'm lucky that my parents can help me out a bit.
If I did a subject with limited opportunity for tutoring and my parents couldn't help me out, then I would've claimed JSA whilst I was job hunting, and the forced employment would've lowered my chances of getting a top graduate job compared with those not forced to claim JSA.
Yes there are loads of people with a 2.2 in media studies from a poor uni who probably need to get used to menial work, but not at the expense of punishing talented, poor graduates by forcing them to work at poundland when they should be doing job applications.