Correct and exactly how it is supposed to work. What do you expect a business owner to do when the job of a worker is not profitable / necessary any more? Pay him forever out of their own pocket, taking a loss? If you've ever hired qualified personnel, you know how hard it is to find good people. No good business owner would fire a good employee for a whim. They'd keep them as long as possible (even when temporarily there's no work)

Other thing is if it's easy to re-hire when there is profitable work again. This happens where there's much more offer (of workers) than demand. For example jobs with low cualification.

So, get rid of manipulating the money supply and economy and the rest will sort itself out.