That's in line with what I perceive to be the waxing and waning of various degrees in the US. The farther the incentives drift away from selecting for people with sustainable interest and aptitude, more generally maladapted people in the field for the next five to ten years.
I think it's often a self limiting thing because word gets around that there isn't enough brass rings for everyone.
The problem is formal scholarly training and employment demands are 4-8 years dislocated from each other.
Universities do their best to keep a bead on the market (at least, the good ones do), but without medical school-style coordination it's almost impossible not to under- or over-shoot substantially in terms of graduate supply.
I think it's often a self limiting thing because word gets around that there isn't enough brass rings for everyone.