I have no idea about the field so I am curious, was the job market for humanities ever better? I mean in numbers, maybe comparing with the number of graduates...
What happened was a big drop in the number of new PhDs. That is why the 1980s and early 1990s might have had okay job markets. By about 1991/1992 the job market was once again saturated.
It's pretty much been varying degrees of bad since then, but as the first chart in [1] shows, it got a lot worse after 2008.
[0]: https://www.historians.org/publications-and-directories/pers...
[1]: https://www.historians.org/publications-and-directories/pers...