What if you don't care about job security? There's many good reasons for being a contractor. I used to be a contractor for the US government, and worked along

What if you don't care about job security? There's many good reasons for being a contractor. I used to be a contractor for the US government, and worked alongside civilian government employees. They tried to even hire me away from my employer (the contractor), and I refused: there just wasn't a good reason. The problem with being a government employee is that the pay is terrible, and also the retirement system is only good if you're a life-long government employee (there's no 401k). If you just want to stay in that job for the rest of your career, it's a great deal, though the pay isn't great, because the job security is fantastic and the retirement benefits are solid if you put in all those years (basically you get a good portion of your last salary until you die). But the cost is that your current pay is lousy: as a software dev, I made much more money than my coworkers, plus I got to save some in an employer-matched 401k account. The government can't find that many people who want the safe, low-pay employment option they offer, particularly for software/IT jobs, so they turn to contractors to provide those people and offer them a type of employment (high-pay, not-so-safe) that the government simply can't do on its own. It's the same with many big companies: hiring and firing is difficult and expensive for them, so they turn to 3rd-party contracting firms. It costs them: each contractor costs quite a bit more than a regular employee, but they don't have to deal with the other problems that come with regular employees. There's drawbacks, however; contractors aren't in it for the long term, so if you find a contractor you really like, you try to get them to join the company directly.