Governments obviously do understand that it's often a tradeoff between more jobs and better employment conditions.
It's the right and duty of the government to try to maximize the wellbeing of their people - if they decide that the best way to maximize that wellbeing is by having less restrictions and thus a more active economy, then that's a valid option. if they decide that better working conditions will have a larger impact than the specific number of jobs lost, then that's a decision that they can and should make.
The employer's choice is to check if they want to do business with the people, laws and infrastruture provided by the country, or go elsewhere; the people's choice is to evaluate if they (not the employers!) would benefit from a lower or higher cost or hiring.
It's the right and duty of the government to try to maximize the wellbeing of their people - if they decide that the best way to maximize that wellbeing is by having less restrictions and thus a more active economy, then that's a valid option. if they decide that better working conditions will have a larger impact than the specific number of jobs lost, then that's a decision that they can and should make.
The employer's choice is to check if they want to do business with the people, laws and infrastruture provided by the country, or go elsewhere; the people's choice is to evaluate if they (not the employers!) would benefit from a lower or higher cost or hiring.