The title above links to data from the Computing Research Association on undergraduate computer science enrollment. The number of new students entering the CS pipeline continued its decline in Fall 2005 to about 8,000, from a high of around 16,000 in Fall 2000. Note that these figures are for US PhD granting departments only. This decline has had an impact on total enrollment since the 2001-02 academic year, and for the first time (during 2004-05) impacted the number of Bachelor's degrees granted (down 17% from its peak in 2003-04).
I take this as good news, not bad. Since the dot-com bust around 2000, the number of CS degrees granted rose from around 10,000 or so to 14,000, and is now only down to a bit less than 12,000. Continued decreases over the next couple years will start the pendulum swinging the other way, with companies increasing pay and benefits, and maybe even improving the work climate. The message will filter through to prospective students, and new enrollments will increase.
As Yogi Berra said, "It's hard to make predictions, especially about the future." I'm basing what I write on the observation that the employment picture has already improved markedly for CS grads. I think that's mostly a result of improving industry conditions, rather than the just-begun decrease in degree production.
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