[chrisbennet]

"Now, let's review some microeconomics. In a free market, it is almost axiomatic that the market always clears. That's a technical term that means that when somebody tries to sell something, if they are willing to accept the market price, they will be able to sell it, and when somebody wants to buy something, if they are willing to pay the market price, they will be able to buy it. It's just a matter of both sides accepting the market price." http://www.joelonsoftware.com/articles/fog0000000050.html

I haven't seen any evidence here in the Boston area that contract rates have risen since I was a contractor 4 years ago. (I still get calls and invariably the rate is always <= what I got before.) One can surmise that there isn't a shortage in economic terms or that companies are unwilling or unable to pay true market rates. It may be true that there is a shortage of engineers a company can afford but that doesn't mean that there is a shortage of engineers. I.e. just because I can't buy gold at $100oz doesn't mean there is a shortage of gold.