Most contract employees dont have guaranteed contracts though. Nearly every contract for contract employees have clauses that say the employer can terminate contract at any point, no explanation required.
I have worked for the last 10 years under contracts, and there is absolutely zero job security. You dont pull your weight, youre gone. They dont have enough work, then someone is gone. No severance pay, no nothing.
If we are going to compare these things to the situations "regular people" experience, we cant pick and choose which parts.