The pool of suitable candidates may be drying up but it is not disappeared. I personally know a pilot offered a captain position who did not take it on financial grounds and I know more than a few who are in the market who have not applied because of the pay and conditions.
This raises the sticky issue that the Government will not confront, when is the lack of suitable applicants within a companies responsibility to fix? By hiring offshore when there are suitable candidates available to work , but for more than a company wants to offer, then those overseas recruits are being used to drive down conditions.
Perhaps it is time for the Goverment to step in and fix the market failure or step back and let market forces work and make companies pay the going rate for services.