I'm not sure if this happen in your country or not, but in my country most companies don't want to make their employees become permanent workers anymore, they only want contract workers because the companies don't have to give compensation to fired contract workers.
I understand that permanent workers are just a "myth", but if the companies suffer bad financial and want to reduce the employees, they would fire the contract workers first, so permanent workers are safer.

Contract workers are exist in every country, there are many reason why a company hire contract workers, first of all they don’t need to workers permanently in which sector, they don't have enough work to do for a long time, when a company will hire contract workers for short time. And no job will permanent from the first month of joined or during apprenticeship, then if you will perform well then after 5 or 6 months your job will permanent this is the formality in my country.