Economics doesn't use "free well" to model labor markets, but it does have search costs and monopsonies. You can't wait for the ideal job to appear because you might starve first.
I think I am fairly aware (see profile) and yet most people dont live paycheck to paycheck. the idea that most working class people are just one step away from being thrown in the streets is just a crazy delusion.
Homelessness, medical care, and access to food are absolutely significant issues in developed countries. Particularly the compounding effects - if you miss one rent payment, no one will rent you another location, jobs won't hire you with poor credit, and suddenly you're not able to get out of you situation. Particularly in America where nearly a quarter of people have medical debt: https://www.lendingtree.com/personal/medical-debt-statistics...