The only shortage is of guys willing to work at abysmally low wages at the entry levels of this biz.
So you're saying that no one is accepting the low wages---hence the airlines can't find pilots and have a shortage? Hope that's true. In Europe I don't think it's the case as guys/gals get up everyday and pay to fly at Ryanair etc.
From 91-93, UPS hired, NW hired, Delta hired (even after the Pan Am bankruptcy), AA hired, Fedex hired. Mind you I'm speaking of ex-military not 2500+ hour flight instructors. No military pilot that I know who got out after the first gulf was was unable to find a job. I'm not talking 1000s of jobs mate just steady hiring. So perhaps only high-time/ex-mil guys were finding jobs.
Same goes for guys who got out from 96-2000. No one I know was unable to find a job. Again, that doesn't mean 1000s of jobs or that 2500+ hour CFIs without a college degree or what have you were being hired by the majors. No idea what the commuters were doing, although a few guys I know did have to start with commuters in around 99-2000. Then, of course, the bottom fell out.