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this doesn't make sense. so why do usa companies hire contractors then? I worked as a contractor for decades and made 150% what perm employees made.

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That I don't know. But the contractor market in the US is very different to the contractor market in the UK and EU. And from hiring in both US and UK, my experiences have been that US employees are more comparable to UK contractors in terms of rights and pay.

> US employees are more comparable to UK contractors in terms of rights and pay

did you account for rsu value too or just basepay/hours . now that i am a perm employee a big share of my comp comes from rsu.

I think they suggested that in the US employees are paid better than contractors, but have low job security.

I feel that the opposite is the case.

There are more regulations around employees than contractors here also, which often makes it not worthwhile for short term workers. Those regulations just mostly aren't around when you may terminate employment.

E.g. the entire I-9 thing and other IRS paperwork, who (if anyone) is responsible for various insurances (unemployment insurance, workers comp, liability insurance, etc), minimum wage and overtime for hourly employees, etc. Many things depend on this distinction.

I can't speak to differences from Europe as I am not familiar with that side of the Atlantic.

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