I don’t know exactly how it works in the US (probably it varies by state), but to give an idea, in Canada employment can end typically in one of three ways: quitting, being fired, or being laid off. (Some other less common cases exist of course like long term injuries or medical issues etc.)
Generally being fired means it was somehow the employee’s fault (anything from not being good enough at the job to being caught doing something actively wrong), while being laid off is due to lack of available work (when a business has to scale down, or dies completely). Laid-off workers can start collecting employment insurance almost immediately, and have certain rights to getting their job back if the company suddenly has work available again, among other things (i.e. it’s not meant to be possible for employers to use layoffs as a way of getting rid of employees they can’t or don’t want to fire).
A fired employee can’t get employment insurance as immediately since they’re seen as at fault for their own job loss from a legal perspective, but if the firing was wrongful, then they might have legal recourse against their employer.
The US is again probably very different in details but the basic difference of employee-at-fault job loss vs the work no longer existing is essentially the same, I think.
Interestingly I can think of a couple games that get around the mon-game issue you mentioned, and in pretty different ways.
Ooblets (which I haven’t played, but appears to be popular with 91% positive on Steam) has you grow your mons in a garden, and rather than pitting them in fights with other critters, you do dance battles. It appears to be a bit more slice-of-life vibes but with the monster-collecting element.
And Cassette Beasts (which I have played, would recommend to anyone who likes monster collectors easily, and is 96% positive on Steam) dodges the issue in a different way. You don’t actually capture and train monsters… you record them, and that recording lets you transform into that kind of critter. Successfully record a Traffikrab in a fight, and you can then transform into one later. You are still fighting the wild ones, but you aren’t enslaving any or having them fight for or serve you in any way. The equivalent of trainer battles is fighting other people who also do this.