yes and no
From a mate who works in training.
Yes they are slowing as they are approaching the numbers required. Almost at the 2/3's of "planned" new hire's for 05/06. Most training is now internal transfers, with 767 fleet planned to reduce as the 777 is introduced.
However from my limited experiences in this industry change happens almost at the speed of light, and it could all change to a downturn tomorrow, or a hiring boom the day after. Yer pays yer money and yer takes yer chances, just as in real life outside aviation.
A degree is not required but preferred. The age thing that Plas Teek mentioned is total crap, as there has been ages from 25 to 50 plus taken on in the last 6 months.
Iceblock has it sorted out, just about bang on how it all works.