I have to admit that I'm primarily familiar with the US economy, where nearly all workers are "at will" employees. This means that anyone can be terminated at any time, without a reason being given.
My experience suggests that those permanent employment policies serve to discourage employment. As a US-based employer, I'm often puzzled/confused by some of the practices around the world. (I'm sure the converse is probably true for EU-based employers considering expanding into the US.)
That's not how permanent employment works in many parts of the world, nor is it even desirable.