Dean Baker has an interesting solution to unemployment: ask everyone currently employed to work less. I think it's a fantastic proposal.
From The Guardian:
Germany's growth has been no better than growth in the United States since the start of the downturn, yet its unemployment rate has fallen by 2.0 percentage points – while unemployment in the United States has risen by almost 4.0 percentage points. The difference is that Germany encourages firms to reduce work hours rather than lay off workers.