maybe it's just from friction and irritation from what you are wearing? my boyfriend's penis gets irritated in the humidity and from working out!! give it a break maybe :)
good luck
It sounds like you are a great friend! And you've been really helpful so far. After all, only she can get a job for herself. Have you asked her what the biggest barrier is in finding a job? She is lucky to have you but you can only take so much and listen to so much. Try asking her to think of...