The flight school business is in the toilet. University flight programs and major flight schools are closing. The military is trying to keep all their pilots from leaving and with the low wages currently being paid in industry, who would leave a military flying job.
I LOL'd at this, as it is a snapshot of numerous points in my aviation history. From personal experience, it could be 1984, when I was a ink-wet-on-my-PPL new guy at one of the imploding University aviation programs. During all 1986 I couldn't buy an instructing job in either Oklahoma or the Chicago area, despite having 300 hours dual-given and three successful PPL applicants. Regionals were loaded with furloughed Continental and Frontier pilots eager to keep current and employed.
It could be 1994, when there were >10,000 hugely qualified pilots from Eastern, Pan Am, Midway, Braniff, American, USAir, etc. fighting for the few airline positions available including a few willing to pay for jobs at Kiwi and ValuJet.
It could be 2004, when nearly every major airline used the bankruptcy process to shred contracts and the subsequent leverage to furlough thousands.
It also applies now, in 2009, when thousands of highly qualified furloughees and terminated Corporate pilots are scrambling for a handful of positions at jetBlue and Southwest or forced to take jobs in Asia and the Mid-East.
One common thread running through this is Kit Darby and FAPA/Air inc. During each of these industry cock-ups I attended at least one of his seminars, largely in order to get some face time with airline reps. I generally blew off the Saturday morning dog-and-pony show and showed up before the afternoon grip-and-grin session, but each time managed to catch Kit's proselytizing about the upcoming pilot shortage. Every time. Looking at the hundreds of fresh-faced airline noobs sucking up every work of Kit's, I wanted to get all Howard Beale in
Network on them. The notion of an upcoming American pilot shortage turning the industry around is wishful thinking of the worst kind, totally unsupported by the events of the past 50 years and the current global economic environment.
I have to agree with Rez that any pilot shortage in the future, no matter how miniscule, will be quickly filled by relaxation of foreign worker restrictions. In today's global economy, global business leaders will provide whatever leverage is necessary to keep their travel supply chains intact, regardless of what political party happens to be in charge at the time. Currently there is a pilot vacuum in Asia and India (but don't blink, that could change almost overnight and has to a certain extent in Dubai) that is requiring the use of expat pilots. Don't think for a minute that it won't happen here.