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[quote=Anonymous][quote=Anonymous][quote=Anonymous]1 contractor I know at State was laid off a month or two ago. Yes, typically direct hire employees are cheaper in total cost than contractors, but they are getting rid of those too. [/quote] How is that possible with benefits, retirement, etc.?[/quote] Who do you think pays for the benefits, retirement, etc. of the contractor employees? They all have health insurance and 401(k) matching too. Their employer builds it into the rate they charge the government. Plus the employer takes their cut for being the middleman. That's why direct hire is always cheaper for FTE. (If we're talking projects or seasonal, then it's less certain to be cheaper.) But if you already don't have enough direct-hire govies - which you don't, because you had contractors instead - then you definitely don't have enough people to do all the jobs once the contractors are gone. And government isn't hiring. So tasks have to be dropped. [/quote]
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