What is the tradeoff when layoffs are harder to do?

Layoffs happen when bets don't pay off. If you want a world where people are guaranteed a job, look at Europe. Also, they don't innovate and have no interesting industries.

They go hand in hand. Companies need to be able to innovate. And yeah that means hiring and firing teams as they see fit.

The second part of your proposal always, always goes unsaid: companies will hire less under a scheme where layoffs are harder.

Cut wages? That sounds horrible and demoralizing. I guess you've never led a team before. Please explain how that company would remain competitive in the marketplace when their salaries are 20% lower than a competitor? They lose talent, fail as a business, and suddenly everyone is out of a job.