Working even menial jobs develop skills and those skills and abilities build on previous skills. It is called promotion. Plus a person develops a work ethic and most important self respect.
And another benefit: if the job is unpleasant or undesirable, that can be motivation to do better such as learn a trade or get an education.
All of this is lost if a person gets stuck in the welfare system.
If a person is "stuck" in the welfare system from birth, none of what you say makes any sense.
Can't lose what you never had.