Fears of an upcoming economic recession drive some companies to slow hiring of full-time workers and increase their contract and consultant workers
According to recent surveys, some employers have been hiring more contract workers as opposed to full-time workers in the midst of economic uncertainties, especially in the tech industry. For companies, contractor workers provide the flexibility to more easily change the size of their workforces as needed in the instance of an upcoming recession. As a result, this can help companies cut costs as well as save money since these types of gig workers do not receive company benefits like health care.
See "Fears of an upcoming economic recession drive some companies to slow hiring of full-time workers and increase their contract and consultant workers ", Paul Davidson, USA Today, March 1, 2023