"In fact right now there are more CFI's then there are students to teach. "

This is simply not true. There may be more "licensed" CFI's than "Licensed" student pilots, but the majority of those CFI's are doing other jobs (121, 135, etc), and are not actively instructing. The regional hiring frenzy has sucked up most CFI's, and many flight schools (including the one I teach at) are DESPERATE for CFI's. So much so, in fact, that we've just had our pay scale raised to $28/hour, not bad for a 141 CFI.

We have 42 airplanes, and 36 CFI's. We are turning students away to work on core classes (Degree/flight program), because we simply don't have enough instructors to keep our planes flying. And, we are losing an average of 6 CFI's per month, while hiring an average of 2 per month.

There is a coming qualified pilot shortage.