Defence is still recruiting - however from a pilot's perspective - I really wish they would pause to let the training system catch up...
DFR don't determine the numbers. Thats purely up to PSA and the respective personnel agencies. DFR's only role in the whole scheme is to screen candidates and select the few that are good enough to attend Flight Screening. From there the respective services advise PSA how many candidates they are willing to take and only select the top of the pile according to their wishes.
The number of pilot trainees coming through is always fluctuating according to demand from the respective services personnel agencies. Thats why there are few Navy pilots in the training pipeline... They just don't need them at the moment.