That sure weighs in the other direction. But presumably no contractor or other non-employee would (should) work for less cost to the employer since they still have to fund pensions, healthcare etc?
I'm guessing that the situation is that in some sectors there are people now working as "contractors" for the same type of money they would be making as employees - but without benefits.
So it's a good thing at least that all this translates to fantastic growth which ultimately trickles down... /s
