Personally I've seen quite a few of up and downs in my market (UK contracting), this might be a bit longer than usual, but not a permanent situation.

An encouraging sign I'm seeing is that there's more permanent positions advertising higher salaries than in the past (maybe just the +20% of inflation from march 2020, but still!).

The market will change again... software is still eating the world, there will be shortage of SKILLED developers for the foreseeable future. And even if I need to make 25% less of what I used to at the peak of pandemic hiring, it's not that bad really!