Although I've seen only superficial commentary on a UK plan, it would appear that the earliest "modern" implementation of this policy may have been in Germany ca. 1938. They didn't directly say you had to work for nothing, but declining any job "offered" to you sent you to a labour camp where you then did work for nothing (for the brief time until you died, for the majority sent to most of the "camps").

The program quite successfully eliminated the "unemployment problem," since "convicts" weren't even counted - or so I'm told.

John