I would say that if you get a 6-9 month contract job, it is best not to count on that turning into a permanent job. The contract positions are a way that businesses shift the risk back onto the employees and gets out of paying taxes. It also leaves employees uncovered by unemployment, FMLA, health insurance laws, etc.

The IRS has really strict definitions about what qualifies as a contract position vs. regular employee. A company can't legally decide that the job is a contract job in June and then a 'regular' job in December if they like you enough. Businesses do it, but it doesn't make it right from a legal or ethical perspective.

Long story short, your worries about contract jobs being risky are very valid and normal.