I'm failing to see how that's an upside at the wider economic level. If companies choose not to renew contracts, people are still getting laid off; they're jus

I'm failing to see how that's an upside at the wider economic level. If companies choose not to renew contracts, people are still getting laid off; they're just getting laid off from the contracted company instead of the company that terminated the contract. All you've done is shift layoffs onto people who, arguably, are the least able to deal with losing a job.