It's worth noting that we also lose on the output, contractors tend to underperform compared to long term stable employees.
So there's a case to be made that it is even lose/lose/lose (more expensive/worse outcomes/loss of economic stimulus of good stable jobs).
This still has the representative issue that each of the narrow bands are narrow due to a huge metropolis within them, and the rural population of that band will always live with rules created by the metropolis for the metropolis.
It's a pretty map, though.
And is still makes more sense than "carefully negotiated by powerful ultra rich a few hundred years ago to protect each of their giant egos."