It still isn't the govt's job to provide people with jobs...all they can do is set favourable conditions.
If these people are working for less, so what, at least they aren't claiming benefits.
I don't agree. Some will be earning below the minimum. The reason that they are working for low pay, if necessary, is because they, probably, are supported by their parents, or they have a mortgage to pay. We, also, like you, have a lot of illegal immigrants here. They are willing to earn a lot less than local labour because of the conditions they lived in in the own country.
But, in any case, this is going a bit off topic, Deflation brings all of these problems.