I really wonder how this can happen in the UK. Here in Switzerland it's the opposite. We have only like 300-400 people a year graduating with a CS degree and 2-3k jobs open. It's a real crisis, and companies are outsourcing to anywhere. Not to save costs, but because they simply can't find people. In my school ETH Zurich, in 2000 there were over 300 people starting CS, this year it was less than 100. I think salaries just have to continue raising until they meet bankers so that engineering and CS starts getting attractive again...