[Clubber]

Contracting is good, but there is a trap. If you find yourself as a contractor and the market crashes, finding new contracts is much more difficult. At least I experienced this during the dot bomb / 911 collapse in 2001. Also, you have to pay for your health insurance, which is getting crazy expensive, and only gets more expensive as you get older. Make sure you adjust your rate accordingly.

This may or may not apply to all locations and all collapses, but expect collapses to happen every 8-10 years.

[dredmorbius]

It's possible to switch to not being a contractor.

I'm also not all that certain that down markets don't hit all categories with similar force. Contractors may be cut slightly earlier (discretionary spending), but that depends on contracting terms and duration (there are set-length contracts), and as a bonus might be hired back earlier.

Much depends on whether or not you have a specific skillset that's in demand, and know how to market it effectively. And that's regardless of your employment terms.

[Domenic_S]

> It's possible to switch to not being a contractor.

Sure, but during an economic contraction is typically not a good time!

[dredmorbius]

It depends, much of that on your relationship with clients and their own savvy.

If you're a valued contributor and your client is aware of that, they may be able to swing things. That may end up being a zero-sum game, with existing headcount being eliminated. Much depends on the organisation's own policies and savvy.

It's an argument for maintaining good relations, though.

[bspn]

Yes, health insurance is an unavoidable PITA, but I'd argue that contracting actually better insulates you from major market corrections if you have multiple client relationships. While a major dot.com type bust may wipe out most of them, you have a better chance of at least one making it through alive vs putting all of your eggs in one basket as a W-2 employee.