Well I guess there are lots of jobs in the armed forces going with all the military action, why not apply to them...Seems to me they never really have highs and lows in recruitement.
I think the only airline which is doing well at the moment is Qantas and it's still running a cadet course next year! Obviously with there now no competition in the domestic scene apart from Virgin Blue, QF has made up in loss of capacity on int'l routes with the increased demand for domestic flights. And before you all ask yes, the Ansett crews will flood the market but are currently being swallowed up by QF for part time contracts.
Personally, I think things will pick up in 6-12 months time....it has too, people and things need to fly.
If the big carriers don't take action now, they will lose money and fold. If they airlines retained all thier employees' now when they are at reduced capacity they will lose big $$$, eventually sending the whole airline bust...therefore making redundant their whole pilot workforce not just a % of them......that would be far worse in the long term than this, all be it awful, temporary situation.