From my purely anecdotal experience, it's not imploding. It's just not a way to get a salary that's $250k+ as easily as it was.
If you enjoy software engineering and are willing to take a job in some place that's not SV, NYC, Austin, Seattle, etc. you can still find jobs that will allow an above-average salary and comfortable living. It's just not going to be at FAANG or Evil Omnicorp LLC.