Are HR people causing middle-class unemployment?

I think you are wrong. The HR person was just telling you how it is and you can't appreciate that. Most likely the company decided to do a contract worker because they changed their mind about committing to a permanent employee due to the recent slide in the economy. HR people are just a vehicle that most companies use to prevent themselves from getting sued and to assist the hiring manager with the process. The best thing to do is be good aa gold to them and do what it takes to get them to like you because their reference to the hiring manager could easily get you the job. Getting a company to hire you is a game and all you have to do is be who they want you to be to get through the process then you can go back to who you really are once you got the job.