Unfortunately, hiring for aircraft programs these days is very Bang-Bang. A350 program starts, Airbus hires thousands of contract mech engineers. A350 program winds down, those people are let go. I think that Boeing is similar.

Lay-offs do not necessarily imply 'increased competition', I think that hasn't changed a whole lot recently. The model is just moving towards highly contractual work with limited managerial permanent roles for the cream of the crop.