The basic idea is that it should be easy to hire/fire people ("flexible labor market", vs. the traditional less-flexible European model), but social policy should smooth out some of the economic uncertainty that produces.
Quick example, unemployment used to be at 75% of net income (give or take). Then they changed it to 70, then 65%. Then they capped it at 1600 euros, then 1200. Now it is capped at 1000 euros for the first 6 months, and then 900 afterwards (and the length has also been shortened).
Doesn't matter if you were earning 10,000 euros a month or 2,000, now you both get max 1000 euros unemployment, even thou one of you paid 5 times as much in social security payments.
(quick note, values are approximate as I remember this from 2 years ago).
The uncertainty of not having enough money for food, shelter, medical care, education, raising children, and so on is a huge limitation on freedom.
We see this very explicitly in concepts such as tenure: certainty = freedom.
The conflict between freedom and certainty is real. Having enough money for food, shelter and medical care means having the ability to command other people to grow food for you, build a shelter for you and provide medical care for you. These people do what you want them to do instead of doing what they would like. Your safety is improved. Your providers' freedom is reduced.