Nowhere near as flexible as the US though. The ability to hire and fire quickly without high costs has helped the USA recover from crises many times in the past as well. Employers in countries with high protections for workers are often reluctant to hire because it costs so much to slim down the work force once you employ them. It's not like the aftermath of 2008 was the first time this has ever been tested.

To be clear I'm not saying their system is superior, I think it goes too far. Poverty and what I consider labour exploitation are much more common over there. Also I think it's pretty clear now that significant increases in minimum wages don't seem to significantly increase unemployment, for example, but on severance pay particularly it's pretty clear this is a tradeoff.