Workfare is an alternative model to conventional social welfare systems. The term was first introduced by civil rights leader James Charles Evers in 1968; however, it was popularized by Richard Nixon in a televised speech August 1969. (Peck, 1998, p.137) Traditional welfare benefits are available with little required of the recipient, save their continued search for employment, if that.

Under workfare, recipients have to meet certain participation requirements to continue to receive their welfare benefits. These requirements are often a combination of activities that are intended to improve the recipient's job prospects (such as training, rehabilitation and work experience) and those designated as contributing to society (such as unpaid or low-paid work). These programs, now common in the United States, Australia (as "mutual obligation"), and Canada, have generated considerable debate and controversy.

There are two main types of workfare: those that encourage direct employment to get individuals off the welfare roll directly into the workforce, and those that are intended to increase human capital by providing training and education to those currently in the welfare system. (Peck, 1998)

In the Third World, similar schemes are designed to alleviate rural poverty among day-labourers by providing state-subsidised temporary work during those periods of the year when little agricultural work is available. For example, the National Rural Employment Guarantee Act (NREGA) in India offers 100 days paid employment per year for those eligible, rather than unemployment benefits on the Western model.