That is true. Because there are so many people unemployed, employers have the pick of the litter so to speak. They can choose someone who is willing to accept less money, or someone who is 10 times more qualified than you are.
Needless to say, looking for a job right now is not the easiest of things.

This morning I got a call at 10:00am from a company who wanted to set up an interview. I asked when they would like to schedule it for, and his response was "Today." I was not at all ready for an interview, but I figured I would have time to get myself together. I asked what would be a good time and his response was 11:00am.
Normally I would not put such pressure on myself, but with the job market the way it is...I accepted the time. I have never showered, put on makeup, did my hair, got dressed and drove to an interview so fast in my life.