Unfortunately the market is still contracting with net losses due to the private sector job creation being outweighed by the large scale public sectors job cuts.
What does this mean for you? Well the focus always should have been on knowing what you can offer a prospective employer that other candidates may not match. This requirement must have increased, with more candidates going for fewer opportunities, you must understand what you bring, package it together and then communicate it effectively, in writing and in person. You must select the roles carefully, knowing what is right for you and then make your application as perfect as it can be. You cant change who you are and what you have done, but you will probably be able to market yourself better.
Also, for those of you who doubt the benefits of networking, now is the time to get on board. If 70% of roles never make it to the advertised or agency market, then you need to know about them in order to cut yourself out of this candidate mass market which has developed. A refresher needed? See here