I quit my job during the last recession to do a startup (which ultimately failed). A lot of people thought I was crazy, but in hindsight it was the right move, as I learned a lot of things that I was able to parlay into a 2nd startup.
Contracting is not bad either. A company today might freeze hiring expecting things to get worse in 6 months. Nobody wants to fire, for economic, legal, and emotional reasons. So people are much more willing to outsource work, even at higher prices.