Of course, the net result is that self-employed contracting is on the rise. Especially the kind where people are self-employed only in name, but really work for a single employer. The only difference is that they send an invoice at the end of the month, and the employer can terminate the contract at any point (depending on the terms in the contract, of course).
Hiring is hard. Especially so when hiring the wrong person can cost you two months' wages.
Ouch. That does make it really hard, impossible even, to make sure you get a good fit.