That is the complete opposite of what happens in the US.
At one company that I worked for, one guy was laid off and came back 4 or 5 times on contract in different roles (QA, L2 support, and as a field technician).
I see both sides. As someone in a high demand field in an area with plenty of tech jobs (not on the west coast), it doesn’t bother me personally. I have literally gone from “I want another job” to “Ive got another job” within less than a month on numerous occasions.
If I were hiring, I would be a lot more reluctant to hire someone if I knew I couldn’t let them go without a lot of red tape. I might just try to get by with fewer people.
But, I consider myself to be a big government free market capitalist. Make hiring and laying off easy and provide a large social safety net paid for by taxing corporations- a better form of unemployment insurance.
At one company that I worked for, one guy was laid off and came back 4 or 5 times on contract in different roles (QA, L2 support, and as a field technician).