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Looking for work in the 21st century

I would like to pose some questions to you regarding recruitment and the current marketplace. This topic came up in discussion with a couple of friends who are looking for new jobs; specifically the pros and cons of short-term contracts, job hopping and trying to find a place that fits for both the employee and the employer. I would be interested in hearing your opinion on this — either as an employee or an employer/recruiter — and what you think the solution(s) might be.