Yes, it's getting worse every day. I get regular e-mail of job postings that match my background, and it seems as though every week or two the salary range being offered drops by about 10%.
That's bad and all, but what especially bothers me is when it cuts into the "meat" -- that is, the ability to support a family in a low cost-of-living area, with no debt. I mean, going from $140K to $100K is bad. Going from $80K to $40K is INSANE.
When you start going south of $70K it becomes really ridiculous to do a skilled job like Software Engineering. I mean, in most cases this field involves a college education, and in every case software engineers put in a LOT of practice.
It's a skilled field, for crying out loud. Not just anyone can do it. And need I mention, CONSTANT, ONGOING STUDY. You don't just go to college and "now you're an accountant!" No, you have to constantly re-tool (the software tools used by developers change every 5 years at least) and re-learn whole new programming languages, new platforms, new techniques, and sometimes entirely new PARADIGMS as the whole software world is up-ended every 7-10 years. It's insane.
In short, your 20 or 30 years of experience become practically worthless compared to young people just entering your field. Their youth, energy, availability and 5 years RELEVANT experience is almost MORE valuable in most cases than your married, aging self all-too-close to retirement and 30+ years experience. Especially since most of that experience is considered "the Stone Age" and totally irrelevant.