It is also not free to give unemployment benefits, it requires higher taxation which moves the sustainability bar higher and more businesses close, etc etc.
They take on all the same risk as owners do
The vast majority of businesses are small businesses, if they go broke the owner is just as broke as the employees.
Each growth stage presents tough choices of additional risk, as well.
An employee doesn't shoulder any of this. There is a world of difference!
Also, the current system enforces the artificial scarcity of capital available to those who need to work for a living instead of living off of their assets.
Jobs at more stable places are available and people will take them. The businesses need to fail or be sold.