Layoffs still work like that sometimes, especially in manufacturing.

It makes sense if, say, you work at a supplier for Ford, and Ford slows their production temporarily, so they don't need the part you make. So you get laid off for a month or two, knowing Ford will gear back up eventually and start ordering more parts.

That doesn't happen in most industries. But even if it did, who's going to want to sit on their heels without an income hoping they'll be brought back in?

I know that it happens a lot in seasonal industries like tourism. Especially where there's no other industries. If your state/country has a pretty comprehensive social safety net (like here in Quebec), it's not unheard off.