Well,
In a market the usual indicator of supply and demand is price.
Given the general degradation in terms and conditions and in the levels of remuneration being offered in most markets, the supply clearly outstrips the demand.
The market for most products is tiered to reflect the different grades or quality within that marketplace. So the market for experienced captains is likely to be very different from the market for 200 hour CPl holders.
Any sign of an upturn in a regional market is likely to be reflected by an increase in the levels of remuneration and overall improvement in the packages being offered.
Given the large numbers of hopeful aspirants who are prepared to give their services for "free" And even pay the "employer," and the pent up demand from experienced career improvers, not to mention military service leavers and pilots whose circumstances have forced them outside their own zone of desirability, it is very hard to see where any short term improvment would result in an undersupply.
In fact most pilots in employment are rarely on contracts exceeding 3 months (on either side.) Retraining is little more than a 3 month excercise. I don't think any employer really sees themselves in a tough spot.
Given the weakness in demand, the supply is astonishing and showing few signs of letting up. It is quite reasonable to assume that any strengthening in demand would result in even more people joining the supply chain. That notwithstanding, there is a massive buffer in place to provide a smoothing influence.
"panic hiring?" No I don't think so, not unless a virus wipes out most of the supply.