Contract arrangements are ideal when there is an infinite pool of fungible labor to use. You can even imagine reducing the term of contract to be advantageous

Contract arrangements are ideal when there is an infinite pool of fungible labor to use. You can even imagine reducing the term of contract to be advantageous when labor gets cheaper. On the flip side if workers have many competing options and labor is limited, you will need to pay a premium to get workers in the door on a short term contract. More likely, you’ll find that most high quality workers were already taken off the market by career track positions.