Newsflash: the legal job market is a jungle. According to the National Association of Law Placement, 2010 summer associate positions are at at least 17 year low (the NALP has only been collecting data for 17 years).
It is tough job market for new lawyers. But law students and young lawyers should keep in mind that the legal market has had peeks and valleys as long as anyone can remember. The market is going to change again and people scrambling for jobs are going to have their pick of good jobs. It is just hard to imagine right now if you have never seen the highs and lows.