Without giving too much away, I have heard that pipeline has increased substantially, bench has decreased, and one strategy is to take on contractors to meet the pending skills shortage.
Given the recent rounds of redundancies, they are taking a cautious approach of not hiring permanent staff until they see concrete signs of sustained economic growth (contractors easier to offload if economy dips again). As such, don't expect a large recruitment drive immediately, but I expect recruitment activity to increase substantially into the next year.
Also seeing substantial increase in recruitment interest from the competition - mainly at to top end for quality candidates. So wouldn't be surprised if we start seeing another round of "war for talent" - agree with Bob's 'boom and bust'.