I read the issue a bit differently than you are. The 9th grade reading and math test, which a "significant" proportion failed (is that 25%, 50%, more, less???) is a floor. It is likely the company is looking for much more than that, a point that is alluded to by the disappointment with local training programs. Moreover, per the article, the company is paying 60-67% of the going rate for skilled workers. Workers who were living check to check before the recession will be reluctant to take a 30-40% pay cut. Also, many with professional backgrounds forget that factory work pay scales are pretty rigid. A worker who accepts a position 40% less that what they were making will likely never make up the difference. That is a tough nut to swallow.

Here is where the right wingers have a partial point. Unemployment insurance (UI) is a cushion that has a tendency to delay that point at which such a worker as described above gets desperate enough to take anything. For my part, I don't think this is bad. When the economy rebounds, underemployment is a drag on growth. Fitting people to the best employment for which they are qualified is the optimal solution. To the extent that UI helps this, it is a good thing.