How do you plan your life and career around the idea that you can be let go at any time for and be unemployed for an unknown amount of time, with no assurances you’ll be employable in the future?
For sure, one should not overextend themselves, but conversely you can do everything right (live below your means, invest vs frivolous spending, robust emergency fund) and still fail.
The anxiety of those faced with this reality is understandable, and there is substantial data demonstrating the harm of such an environment (chronic stress) to the human.