OK people are definitely talking about two different things in this thread then.

There's what you're talking about, W-2 contractors who work through a staffing agency which provides temporary work for lower-skill positions. They are often paid less than full-time but this is usually because they have less skill/experience. An equivalent full-time job often doesn't even exist at the company.

And then there are independent contractors (aka consultants) who legally function as their own company, and who do higher-skill contract work. They are paid much more than full-time.

W-2 contractors are the same people who were FTE before. They are not paid less because they have less experience. Please read the article before you comment.