The truth is, elves are forest creatures, so keeping a bunch of them up at the North Pole is kind of a dick move on Santa’s part.
But with deforestation and the loss of habitat, elves really don’t have much else place to go these days.
And Santa does teach them a trade in toymaking and logistics, even if the pay is for shit and the benefits are nonexistent.
It’s not like Santa needs guards or fences to keep them in.
One step outside of the factory dormitory, and they freeze their asses off.
No wonder why they’re so jolly.