Nearly 21 million people are out of work across the European Union, and Brussels is hoping 19 billion euros will help solve the problem.
The European Commission is handing the cash to EU governments in a bid to create new jobs and retrain workers.
Meanwhile, Europeans are meant to be heading to the polls over the next three days, but voter turnout is expected to be lower than ever.
There is widespread disillusionment with Brussels' perceived failure to act decisively on the economic crisis and rising unemployment.
Unveiling a new strategy to fight joblessness, Commission President Jose Manuel Barroso, who is seeking a second term in office, had this to say:
" I think it is critically important for politicians all over Europe to connect with what are the most important concerns of citizens. And the most important concern in Europe, is unemployment."
The European Commission is freeing up 19 billion euros from now until 2010, to help preserve Europe's labor force.
Normally EU member states would have to cough up half the cash, but because the financial crisis is so severe, the Commission says it is not attaching those conditions this time.
Commission president Jose Manuel Barroso says it is essential for EU member states to find ways of keeping people in the work force.
" When you have millions of people being haunted by the specter of unemployment, Europe cannot limit itself to being a bystander. Employment is a matter of local concern, of national concern, but also of European concern. And that is why we need a European dimension."
The aid from the EU's budget will also underpin loans, and go into upgrading skills for workers, as well as supporting failing businesses.
The Commission wants companies to avoid laying off workers, by offering shorter working hours. And there are 100 million euros on offer to help reboot or start up small businesses.
The Commission insists the money would only be used for companies which would otherwise have been fine had it not been for the financial crisis.
The money would not be used to prop up over-expanded sectors like the car industry.
There is a broad European consensus EU governments should uphold Europe's social model in trying to reboot the economy.
The Commission is quick to point out that issues like labor taxation and social security are matters for national governments.
The business community has already warned the Commission to keep its nose out of trying to over-regulate the way companies operate- and the proposals have already been criticized by the left for being too little too late.
And as voters head to the European polls, the most the Commission can do about unemployment right now is to come up with some fresh ideas.
By EU correspondent, Nina-Maria Potts
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