As someone on the other side of this in just one private company of thousands:

I put out 2-3 job ads a month. Of those 1 will get past interviews to a negotiation phase, one will get stuck with a hiring manager who only wants to interview the perfect candidate, and one will be pulled for budget reasons and held to try again next month because the candidate for the first job asked for a little bit more money. We hire about half of the people who make it to negotiations.

My feeling is it’s that no one has any money to spend. Every company I can think of is desperately waiting to get paid so they can pay their own bills. Most contracts with the government were horribly delayed by the shutdowns last year and it’s been knock-on effects ever since.