It largely depends on if there is a project freeze or a headcount freeze. Any negative economic blip is used as a recruitement/headcount freeze where employers

It largely depends on if there is a project freeze or a headcount freeze. Any negative economic blip is used as a recruitement/headcount freeze where employers can cut out the 'deadwood' without market/customer/shareholder/staff negativity. In that environment, consultants and contractors are valuable because the work needs to be done, but they can't hire the staff (hiring freeze + normal churn + "it's the economy" layoffs) On the other hand, if projects are being canned, products aren't being developed, apps aren't being launched, that sort of thing then contactors and consultants are not in demand. It does take a lot to stop projects at that scale, and they tend to be focussed on a particular sector. I can think of 2008/2009 in finance (obviously), and 9-11 in the insurance industry (travel recovered very quickly).