I cant imagine a shortage of 500 hr guys, or 1000 hr guys. Look at how many flight schools and university programs have opened up in the last 10 years. These days people can go from 0 to 500 hours with all the nessesary ratings in a year pretty easy before they have time to figure out what they got into.

Latley I been instructing nearly all new cfis and most have no idea about what a job in the regionals is like or very much at all about the industry. They dont know about pay, work rules and all the pros and cons ect. For them flying looked like a fun job all they had to do to get the money to do it was sign their name and start having fun.

There is a shortage of instructors right now though. you can make 50-60k yr teaching european guys under JAL. you can actualy make enough money to live on and fly too while your still young.