I've seen a number of articles on this topic recently, from several industries. The common story seems to be "we're hiring, and we're getting five times as many resumes per position as before, but only half as many qualified applicants."
Companies aren't looking to hire dead weight right now. In very good times, people with weak skills can get work just because whatever little thing they can do allows the stars freedom to work on bigger-money projects. But in a bad job market, you really have to boost your skills up to the level employers are still willing to spend money bringing in.
To be blunt, though, a lot of dead weight still isn't getting fired, either.
In a down market, companies should be hiring, even if they don't "need" the people. Great talent is not only more available now than before, but it's probably cheaper, too (after enough months of looking, people just want a job, and are less picky about salary and such). And since the job market isn't great, once your talent is in the door, they're not likely to leave anytime soon. It is the perfect time to build a dream team and actually get things done.
Companies aren't looking to hire dead weight right now. In very good times, people with weak skills can get work just because whatever little thing they can do allows the stars freedom to work on bigger-money projects. But in a bad job market, you really have to boost your skills up to the level employers are still willing to spend money bringing in.