How will U.S. employ military contractors in future conflicts?

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The recent Blackwater trial ended in the sentencing of four U.S. military contractors in the death of dozens of Iraqi civilians. That decision has once again brought contractors and the future of the military back into focus.
Many experts say the U.S. military simply does not have enough bodies for all the missions it wants to be carrying out, yet military recruiting is down and the use of contractors has risen.
What does the government and private contractors gain from this situation? Who is the military recruiting, and how are they trying to find top talent and retain it?
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