It's been that way since before you were born and it'll be that way long after you're gone. There have always been more pilots than pilot jobs. Things might be worse now, but they were never good.
My experience has been that putting your resume on the pile, gets you nowhere 90% of the time when things are better and 99% of the time when things are worse. Sending out a resume cold (i.e. without having a contact or being known to someone in the company) is like fishing with no bait on your hook. You should still do it because you've got nothing to lose. But you shouldn't expect to catch many fish. Regardless of the job climate, getting hired is always easier when you have an in. Either you know someone working there or you're already working there in some other capacity.
You want to get a 135 gig? Once you have enough time to make their insurance mins, get a job pumping gas on their ramp and wait. Keep a clean pair of dockers and golf shirt in the trunk of your car at all times so you're ready when the King Air FO calls out sick for the last time and they've got a trip leaving in an hour with no right seater. Want to drop jumpers? Get a job in the manifest office and wait. Keep teaching part time to stay current. Want to break into something bigger? Get a job on a busy corporate ramp and network/smooze/butt kiss everyone you meet. When a job becomes available, you'll know about it before the ad ever gets placed. Pretty much everyone I know, pilot or otherwise who has a dream job, got that dream job because they knew someone and were able to get an interview before the job was ever posted.
I used to do some side work for a skydive operator (not flying jumpers). I needed to talk to the owner about something one day and I found him outside talking to another guy. The other guy was a pilot who was dropping off his resume. His resume was impressive. He had previous jump pilot experience, he had twin turbine time, and way more total time than I had at the time. When they were done the owner told him the usual 'I'll keep you in mind if something opens up'. As soon as the guy was out of earshot, the owner held the guys unopened resume out to me and asked if I wanted it with an evil grin on his face. He obviously had no interest in reading it. I was flying his jump planes a few months later even though I had low total time and no jump pilot experience. When hiring is down, who you know and who knows you becomes even more important.