Yep, spot on NS. There are far too many people being trained by the FTOs for the relatively limited numbers of jobs on offer - many of which, anyway, are aimed at more experienced pilots. Now they are in short supply, partly because people are often quite reluctant to move once they've got their feet under the carpet at a company and now have a place on the seniority list, command on the horizon, and (at last) some kind of financial future!
The fact that people with some experience are difficult to come by means that more airline jobs get opened up to ab-initio pilots, but the numbers will never be sufficient to absorb the output from all the FTOs. Even with all the other users of commercially-qualified pilots brought into the equation, there simply aren't enough jobs for all those who wish to fly for a living - and then there are all the other countries within the EU to consider, none of whose aviation scenes are half as healthy as UK. That's why companies here can still get away with demanding that you pay for type ratings etc.
Sad but true.
Scroggs