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Yes the job market is not that bad. . I'm sure you're going to find a contract.
Some people prefer permanent positions because they give them sense of "security". There is no such thing. You can be terminated without any reason. If there is a major layoff you can do nothing. The best example in Canada is Nortel.
As contractor you get better rates and pay less taxes and if you are lucky to find longer contracts, it's definitely better.
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