I think a possible solution might involve a series of reforms discouraging employers from working folks more than, say, 30 hours per week. The exact hourly figure would need to be calculated, but if you did it right, you could solve some problems.
Most likely, you would need to reduce the threshold at which employees get overtime from 40 to the new figure; tighten up the laws regarding who can and cannot be classified as 'management' or 'contract labor'; jack up the minimum wage; expand and improve the enforcement of labor laws, etc. but if you did it right, you could both drive down the average per employee number of hours worked, and drive down the unemployment rate. The latter because many employers would hire additional workers to fill in the gap between a 40 hour week and, say, a 30 hour week.
Of course, for every 400,000 or so newly employed people, you would pressure inflation to increase by about a quarter of a percent -- and that would create tremendous political pressure against doing anything along the lines I've suggested. But hell, just tell everyone living on fixed or investment incomes that I thought my scheme was a good idea, and I'm sure they'll fall in line overnight.