A pilot shortage simply means that employers can't get the people they want at the price they want to pay. Solution is to reduce requirements and/or increase pay. You can only go so far in these areas before it starts to hurt.
Advertise B777 pilot positions with a nice base, good pay, free rating and low experience requirements, you will be snowed under with applicants.
Reduce the pay and increase the experience requirements, watch the applications thin out.
When you run out of people you'd want to employ at the price you can afford, you've got a shortage.