I wonder if he had ever thought to set up his own business before. If yes, it is the best time for him to start. At least it is always good to keep him busy in something that has potential.
If not, it is also a good to plan and act now. Still it is good to keep him busy.
Anyway, I was laid off 6 years ago, and I set up an retail business. Although it was small, it still brought in some money until I found a good job. If I lose my job again, I will set up a real business so that I do not need to find a job.