I'v been talking to engineers and recruiters I know. Along with some articles I've read (there was a good one the other day, I'll try to find the title and post a ref), I'm convinced we have nothing to worry about. Personally, I think this is short term anyway, but that's just my little-economic training, opinion.
But economics aside, engineers, for the most part, aren't being laid off. Obviously when a compnies goes belly-up, everyone goes. But the companies, big and small, laying people off, are focuing on sales, marketing, support staff, project management, etc; enineers are being laid off in disproportionately small numbers. Plus, there are still plenty of companies which are hiring eningeers.
If you are a good, hard core programmer, you shouldn't have too much trouble finding a job.
--Mark
hershey@vaultus.com