I know several electrical engineering professors (PhD's from Carnegie Mellon, etc). They have no issue getting jobs at universities or in private sector. They are paid very well too.
I'm glad to hear job prospects for EE's have improved. I remember a time about 12 years ago when a graduate degree in EE and a buck would get you a newspaper and a shitty cup of coffee. Nothing like getting introduced to the new-hire at our shitty 2nd shift call center only to find out they've got a doctorate and 10 years of job experience and ended up having to take a gig in tech support just to feed their family.
This may only be the case for CMU EE PhD's. In today's winner-take-all economy, graduates of top programs have all the options; anyone who isn't a superstar generally has to eat shit.
Grads from big state universities with a technical focus do pretty well too.