It's always competitive to get in. Their problem lately has been retaining experienced mid-career pilots to provide mentoring, training, and leadership. That cannot be fixed by training more noobs.

It will get somewhat more competitive but not because there are a bunch of civilian pilots on the streets, but rather because the economy will be bad and fewer employers will be hiring. The military (all branches) typically gets more applicants in times like that. But previous flying experience is not necessary to get a military flight slot, and it only gets you limited extra credit as an applicant.