I too underwent a huge drop from an IT Manager to the ranks of the unemployed. Despite certain slanted posts from rabid Democrat-haters, I don't blame any particular administration or policy on this... in retrospect, it was bound to happen.
To pander to the charge of "pessimism" some have made towards the original poster, I also agree with that "the times, they are a-changin'...": More and more jobs are going overseas; IT pros are in vast overabundance; pay scales are nowhere near where they were just 4-5 years ago; the technology changes so fast nowadays that even a few months out of direct contact with the field makes you essentially "unemployable" unless you keep up with schools and new certs; and of course after the dot-com crash there are a lot fewer employers out there.
However, on the positive side, and despite anemic job and economic growth, there ARE jobs out there, even in IT. Sometimes it requires a willingness to relocate, or take a huge pay cut, or retraining in some related field to "fit" into an inexact match, but they're there.
In one of my previous incarnations, I was a career advisor. The advice I gave (in the late 1980's/early 1990's, one of our bigger recessions and job-loss periods prior to 2000) still applies today:
1) Reflection: Take a good, hard look at yourself. Not only your broad list of skills and experience, but perhaps most importantly your likes and dislikes, desires and dreams. It may sound silly, but it's really far more important to be doing something you're in love with than something you're trained to do. Are you HAPPY in IT? Do you wake up every day excited (or at least moderately pleased ) to get to work and do what you do there? If not, it's time to reflect on what your ideal line of work would be, within reason (although it may be nice to dream of making macrame laundry baskets all day long, will it pay the mortgage?).
2) Reality: Take a good look at your job, the job market, the industry, and this country's and the world economy. Do some research. Then face reality... is your job in danger, or is the outlook bleak for a long-term career doing what you're doing? If not, God bless you... you're among the lucky few. If so, you're actually amongst the majority. Current statistics show that the average person will change their CAREER (not just their job) at least FIVE TIMES in their lifetime. If your research shows that your job may be in peril, either immediately or long-term, then it's time to start considering a new path.
3) Re-Evaluation: a) Even if you find that the general trend in your career path is OK, it may be that re-training or at least a broadening of your skill-base would be in order to make your job prospects more aggressively marketable in the future. Consider completing that Bachelor's degree, Master's degree, or certification that you've been putting off. Even more, consider getting skills and education in a totally different area which complements your existing training, either by going back to school for that second degree or by asking for work or projects at your current job either in another department or otherwise outside your current "position description".
b) The other side of re-evaluation is on the home front. Make sure your current living style, family life, and economic condition are as lean and "portable" as possible. What this means is that despite having what may be a nice salary NOW, don't live like it. Rent, don't buy. Drive the old car. The washer and dryer still work, keep 'em. Eat out less. Save money. What all this prepares you for is the possibility of having to relocate (often with little notice), to take a lower-paying position without hardship, or possibly to reconstruct your entire career around a whole new paradygm... such as getting out of IT altogether.
4) Reformation: Finally, as the philosopher Ernest Holmes said, "Change your thinking and you'lll change your life". We IT people have come to believe (thanks to the hype of the 1990's) that we were indestructable, unassailable, and indespensible. Sadly, despite at least four years of evidence to the contrary, many of us still retain this shocking lack of humility. The truth is everything changes. There is no life without change... the alternative is death. What is true of our bodies is just as true of our careers... we must change to survive. This doesn't mean just learning new tricks and technical skills... sometimes it requires real change, including reforming our career paths (and lives) into a more flexible, attractive package for potential employers. This involves opening ourselves up to new opportunities, new paradygms of our personal lives, and new future-looking outlooks for our careers.
I worked in IT for nearly 20 years, off and on. I left my last IT job in 2002 to start up my own company, which didn't fly once I found out that two of my partners bailed with their funding (and trust me, I've learned from THAT little episode... like getting everything in writing ). I spent eight months basically unemployed, taking little IT contracts here and there to keep my car payments up. Finally, I followed my own advice and started the Four R's... to find, after facing the "reality" portion, that I don't really want to pursue an IT career anymore, not as my PRIMARY job anyway. I will always use my IT skills... but now I am going back to school to finish up a new Bachelor's degree in Sociology, which I plan to use in counseling and research. I also finished up my studies towards becoming an ordained minister, and have taken a full-time job as an Executive Assistant (with some Web duties) to get me through the schooling.
I am tranforming my life around a new paradygm, and I am happy. Perhaps the best advice I can give is simply this: Do what makes you happy, and don't look back. Every path we take in life is the right one, because every path teaches us something new, and learning is why we are here on this Earth.
Thanks for letting me contribute. I hope this helps someone in some way.
John Cline