I don't think things will be the same anytime soon. I'm going to echo the other posters' sentiments and say they're going to have to make good decisions for years before things improve substantially.

As for recruiting, we're probably less competitive than we were, especially here in NY where the layoffs were massive. That's to be expected though in a well functioning market, especially for law student recruiting given the large number of first years shown the door. Honestly, if I were choosing again as a law student I probably wouldn't come here. Even among the existing associates in this office a lot of people have left or are looking.