True.
There are technical fields in government military labs and warfare centers that are desperately short of engineers and/or PhDs, even with the cuts - where entire divisions have nobody under the age of 60. The problem is that they now have a smattering of 25 year old fresh out of college types, but then there is a huge hole in the middle. The Navy actually hired a lot of people out of the auto industry to try to fill that.
Going into defense has been “uncool” for quite a while (if you wanted to get laid, you tell girls you’re going to work for Solyndra, not the Naval Research Lab or Lockheed Martin), and there was a long period of time where Wall Street was siphoning off science and engineering talent for people to be “quants.”