Martin Sime, chief executive of the Scottish Council for Voluntary Organisations, says the scheme saves money and gets better results.
Data shows one in four on scheme has stayed off benefits for 13 weeks, but no figures on how many have found a job.
Back-to-work providers, such as A4e, should not be judged on inflexible targets and crucified when the economy falters.
Private firms on payment-by-result contracts have suggested more punishments should have been meted out.
Company contracted by government's employment scheme getting just 3.5% of referrals into long term jobs. A4e has a success rate of 3.5% in finding long term work for the unemployed, 2% below the level required by their contract.
In all the debate about jubilee stewards sleeping under bridges, one big fact is being overlooked – Britain's army of unpaid labour is growing bigger each month.
Unions say firm involved should be banned from Olympics, but No 10 says unpaid jobseekers' treatment was a 'one off'. Some of those hired as stewards had to spend the night before the jubilee pageant sleeping under London Bridge.
The Prime Minister's spokeswoman says treatment of unemployed people who worked as stewards was a 'one-off'. Two unpaid stewards said they had to camp under London bridge before the event, change clothes in public and had no access to toilets.
Former deputy PM says incident in which unemployed people had to sleep under bridge raises questions about Olympics. Lord Prescott accused the government of presiding over the development of labour camps after workers said they spent the night in a 'swampy' campsite after a 14-hour shift.
Coachloads of jobless people were brought in to work unpaid on the river pageant as part of the Work Programme. Some of those hired as stewards had to spend the night before the pageant sleeping under London Bridge.