I work for the Workforce Commission here so I know all those rules like the back of my hand. The rules were put in place to keep people from staying on welfare for life. It helps prevent this from happening, but it does affect the people who actually need help.
Workforce Commission (there's one in every state although the commissions are referred to by different names in every one) operate One-Stop Centers. These centers are for people who don't require any welfare help (ie. food stamps, unemployment, welfare, etc) but just need help getting into the workforce. They're like headhunters, but for free. They'll help you with skills like creating a resume and interview skills. Some may even be able to offer you some supportive services money like help with transportation or child care. They also should have access to a statewide database of jobs, many of which never get listed anywhere else. To find the closest one to you, look in the phone book under Workforce in the government section or go to this website
http://www.servicelocator.org/ to find the closest One-Stop center to you. This is a national site, so you can find one in any state.