The UPS requirement will clean out a lot of quality dudes from supplemental and second tier cargo operations (Polar, Atlas, Gemini, etc). When I say "second tier", I mean in wages, benefits, and size...not quality of the dudes there.
Many regionals (Pinnacle for one) is tight on captains. They have bailed to other pastures (FDX, Airtran, Continental, and SWA) and replacing them has been slow. Guys behind them don't meet ATP mins or cannot get through the upgrade (yet).
The pressure on GA IS reducing the number of students and the general pilot base.
All this adds to up there is SOME pressure now to capture the best candidates. Guys with 1500 PIC 121 time, clean records, 4 year degrees, and (as a bonus) some LCA experience or training shop experience are pretty marketable right now. Not saying they'll get hired--but they are getting called.
At some of the "tweener" places--like Jetblue, Frontier, and Airtran--there is some real attrition taking place. Also happening at CAL. So--while we all see some good folks get passed here and there--it does seem like the "best" candidates are getting a lot of attention.
One last anecdotal point--MANY of the folks I've helped that have been hired at SWA or JB get mutliple interviews. The airlines are fighting over the same guys in a lot of cases. Even if there are plenty of pilots to go around, the guys and gals with the "magic" to get called by one carrier often seem to get called by more than one about the same time. And no--this isn't just military guys. I've had guys with JB/SWA, JB/UPS, SWA/UPS, and FDX/SWA options in the last two months. I've also had a few folks call me after joining airline X to say Airline Y called and wants to give them a shot too.
Its a tough game--but the skies HAVE lightened a bit the last 12 months as the 9/11 storm and bk fallouts have gradually faded some.