I'm not quite sure what people entering the work force are looking for these days. I know when I graduated college with a degree in Computer Engineering, there were some darn good offers being handed out to me and my graduating friends. I preferred to stay near home as I was married, both of our families lived here and we had a son in school. I don't live in the highest paying part of the country either so I started out at about half of what I could have it I would have relocated to Silicon Valley.
I did very well over the next few years as a consultant and software engineer. I saw the first wave of global outsourcing coming and I read the writing on the wall. Then the big technology fallout of the late 90's leading to the the DOT BOMBS. I had Oracle Administrator friends making top dollar that couldn't get a job as the .coms had flooded the market with technical people. Big companies then began cutting costs not by layoffs. It was called reclassifying your job and letting you reapply for it. The catch, the job you were getting $60K a year for is now called this and it only pays $35K. Oh, but nothing changed in the job. You are free to leave though if you think you can do better.
I set a path out to learn the business and get out of programming all together. You can send coding jobs anywhere in the world. What you can't outsource is business knowledge and how to put all the technical pieces together which is what I do today. I'm still in the same town around all my family, worked my way up into niche positions where I had local presence and value and today I'm nicely in the 6 figure territory along with my wife that did the same thing and makes about the same as I do. A lot of my friends that started out in the high paced high paying silicon valley jobs had to start over a few years later and yes they had to relocate. Some actually found other lines of work.
My company today like all companies are looking for ways to cut back. We had a layoff a few months ago and another one is coming soon with yearly layoffs planned over the next three years to meet a goal. No one is safe today. All you can try to do is make yourself valueable. I could be the next one to go and I know I will be looked at when they pull the highly compensated employees. If it happens, it happens. I don't lose sleep over it. I already have a plan in mind. I'll take a few weeks off to hit the gym to get the body back in shape and them I'm going to hang a webcam in my shower and start a website. Subscriptions are $19.99 a month.