Certainly, but they aren't living in poverty. For example,
http://en.wikipedia.org/wiki/Unemployment_benefits_in_Spain Person with no children: 497.01 / 1087,21 euro which is $650 for doing nothing.
Well, you can argue that there is always a choice. And most of them take it, by leaving everything behind and moving to Germany or other central european country. Until they don't want them there anymore.