The premise of this paper is that when long-term unemployment reaches very high levels, increasingly costly forms of assistance, like job creation have to be used to redress the disadvantage the long-term unemployed encounter. It then goes on to argue that effective job creation requires a new institutional framework, regional or local employment boards formed by local business and community organisations. Such an institution is well placed to satisfy the many conflicting objectives of job creation, and would ensure the public funds are used imaginatively to the benefit of both the unemployed and the community as a whole.