I can't take credit for this thought

If folks are in such desperate straits with no pay check, what happens when the business cycle eventually tapers off

In our country there is an 8 week waiting time before you get your 1st unemployment cheque

No idea what the rules are in your country

What I am saying is that most people do not have  enough or even no savings to tide over a rough financial period, if this lay off is such a burden on finances.

 A 100 dollars saved twice a month = 24000/yr.

5 yrs = 12,000.00 in savings

How many people could buy a cheaper car and over the 5 yr re-payment schedule have some kind of rainy day fund. I know not everybody, but I would think some how people could start a rainy day fund. Especially if you depend on a pay check.

You have little control over your employment, and even if you have skills you need time to get re-established. Do you move or wait for an opportunity. All kinds of decisions that take time with less income, as you make these decisions.

This should be a lesson to what could happen in the future

And these people know they will receive back pay. If you lose your job, which to some will surely happen, this should be a lesson on why people need some kind of rainy day fund. Obviously most don't have that rainy day fund..

I know, worry about that when the time comes.