We own a French company that makes fighter jets. Demand right now is off the charts. They could probably have 10 to 15 years of orders.
We asked them why they wouldn't boost production. Did they not have the factory space?
They said they have plenty of space. But the second they hire more people, they can't lay them off. Because of that, they're not hiring more.
When every hire is a lifetime commitment, companies stay small, and new companies don't get started.
Look at the number of startups in Western Europe compared to the United States.
The protection of workers did not protect workers in the end, because you stop creating new jobs.