Take a look at New Zealand's approach to this issue. We have much stronger laws for our people and we have a thriving economy regardless.
Companies nees to really think about hiring staff as the process for firing in and of itself, let along laying someone off is a difficult and costly one.
This results in two main things; 1, when a company changes direction or a project gets cancelled - they try as hard as they can (and have the legal obligation to) to place you on a different project but you keep your role. 2, if that is not possible, they need to help and support you when it comes to either finding a new and different role within the company, or find a role elsewhere, by providing interview training or help with your CV.
This does not apply for contractors, who get treated more like employees do in America and are a way for companies to avoid the risk of over recruitment, at the expense of having to pay someone twice the market rate.
I'm gonna be social and charismatic af
Operation duck hunt, sick name!