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Here in India, the situation has slightly improved (though the technology shares are at its lowest). Employers are looking for qualified employees in telecom, RTOS programming and database (oracle etc). I don't hear Java anymore.
How is it in your country?
One of my areas is as a recruitment consultant in the UK for a niche IT recruitment market (Systems/Enterprise Management). At the moment I am finding life very tough in this area as none of my clients are bringing in enough work to take on staff, even if they lose someone. The global economy and it's current uncertainties are the main reason for this, fuelled by a the possible war between the US/UK and possibly other with Iraq.
My feeling is that once the war is either averted or finished then the market will start to move again generally including IT. Head of IT Carly Fioriana (spelling?) believes that there are tough years ahead for the IT industry but I still believe that there are significant returns to be had from IT spending.