I can't speak for his industry, but I do have some first hand knowledge of the current state of the engineering job market in Ontario (and likely all of Canada).
Contract positions are like the anti-union and if you go on Monster and do a job search for engineering positions nearly all of them are through contract agencies. Like that article stated, no benefits, no bonus programs, no RRSP matching, decreased job security and decreased pay. I make less now than I did four years ago. If you factor in a bit of COA, I make about 20% less just to move back to the city I actually wanted to live in. The company I work for has a policy that they will only renew a 1-year contract once. If you make it through a 2nd year they will either hire you on full time, or give you the boot. Generally you have to be pretty useless for them to let you go but in the current economic environment I can't take anything for granted. I'm still renting. If I were making full time wages and pulling in the bonuses I'd be well on my way to home ownership, as it is that's out of the question. So I continue to put my money in a shoebox and light it on fire (rent). And I continue to make very little progress with savings, RRSP contributions, debt reduction, etc.
Prettly lame.
And it's worse for engineers that are just trying to get in now.