According to Working Links, 55% of the long-term unemployed said the best support they could receive if they lost their job or it became unsuitable would be benefits. But an individual may have to wait up to six weeks to regain their benefits should they want to find another job - leaving many out of pocket.
The study also found physical health issues are the biggest barrier for the long-term unemployed with more than half (52%) citing this as a problem, followed by lack of skills (30%), mental health issues (22%), care needs of family members (21%) and childcare needs (17%).
Among those surveyed 46% cited skills training as a way of helping them back to work and 42% favoured confidence training to deal with job interviews.
Working Links found many jobseekers valued employment, saying it could allow them to make friends, establish structure and routine, be a positive role model to children and avoid living off "handouts".
Breege Burke, managing director of Working Links, said: "It is imperative we take on board the findings of this study and translate them into practical solutions to help people overcome both their personal and practical barriers to returning to work, particularly with self-confidence."
Benefits system encourages joblessness
Jobseekers worry about being out of pocket if they take the transition from benefits to paid work, and this can put them off applying for jobs.
