The US also has contractors.
That's why many EU countries have pretty strict limitations on short term contracts, like how many you can do in a row. It results in a huge reliance on contractors.
Can you explain your thoughts here a bit further? The short term contract can be renewed or replaced with a full time contract. This should provide extra incentive to perform well compared to a full time employee (who doesn't have to worry about either), as long the as the company is a good employer.
As someone in games, this is exactly the road to getting exploited. "If I work harder and really wow them with this feature, I could get full time work!" meanwhile, there were plans to not renew anyone at the end of the project and to lay off full time workers. But you get a convinient carrot to lure starry-eyed devs with
Your "as long as the company is a good employer" is doing Atlas levels of lifing here.
I don't think that's happening in games or tech, but it's been widely observed that Gen Z is less invested in corporate than ever before (or from the boomer's POV: "nobody wants to work anymore").
It actually makes companies more hesitant to fire.
And on the other hand, the French government dramatically loosened the rules around layoffs in 2016 (you can let people go as soon as you have a decline in sales over a few month, a negative cash flow over the same period, if their are new competitors on your market, or even just if there's technological change in your sector that justifies getting rid of people). It was 8 years ago and it has had little to no impact on France's unemployment, which is still very high.