The issue is as I can see it:
UK aviation market consolodated in 2007 with the mergers and takeovers.
Reluctance by the majority of airlines to bite the bullet with line training, despite a wealth of fATPL holders out there.
A desire by airlines to beg, borrow or steal experienced pilots from one another rather than gain loyalty by giving people their first break.
The economy is slowing, Iraq was done to ensure China didn't get access to their oil in addition to the Iranians and ensure we had a cheap supply. With petrol hitting £1 a litre from 75p ish when the war started, its safe to say it hasn't really worked out ideally.
Housing is slowing, usually the early barometer of how things will pan out.