Depends on where you were. If you were in San Francisco, I can't speak to it; but if you were in your standard middle American city, it was fine. I graduated with a CS degree in 1999. In 2000, I got a job doing Java dev with no Java experience on my resume, and a 20% raise from my previous job. Later in 2000, I got a job doing Java/Perl (with both on my resume) and another 15% raise. In 2001, I got a Java job and 10% raise. And then in 2002, I got a .NET job (with two weeks of .NET experience) and a 25% raise.

The main downside was that smaller companies kept going out of business (which is why I had so many jobs in that time period -- two of those companies disappeared entirely, one of them taking a month's worth of salary with it, which super-sucked).

A key thing, though, is that lots of really, really, really marginal developers got hired in the late '90s -- I worked with some of those at the first company that went out of business -- and they very possibly never got a job in the industry again. Crashes make companies a lot more selective, just as bubbles make them hire any warm body who can possibly even theoretically write code.