Not sure why you refer to the US immigration policy, this is how it works essentially everywhere. In the UK, for example, you get around 60 days to find a new job or you have to leave the country. https://iasservices.org.uk/tier-2-visa-termination-employmen... I am not saying that the immigration policy is not broken or broken, I am simply stating the fact that other countries literally do the same.

If you're on a H1 (or some of its cousins here) and you lose your job, you have no option to even try to find another. Your legal status in the US is coupled to that job, not just any job.

Are you sure that is correct? According to results from googling you get 60 days to find a new job if you got laid off from H1B job. https://www.stilt.com/blog/2020/05/steps-after-an-h1b-layoff.... Ps: to someone who downvoted, what don't you agree with?

You are right that I overstated this. You do have a window to try to find a new job. However, the new employer will need to be willing to sponsor a new H1B visa, and will need to get their part done within a fairly narrow timeframe.

I agree that this is not an impossible scenario. But I also have a strong feeling that it's not a particularly likely one either.

Absolutely, my point was that this system is essentially everywhere, in one way or another, there is no need to say "US", since it's not USA specific system.