I was a contractor and have been working extensively with contractors on different projects for the past 4 years. My feeling to the current job market in Ottawa is: it's definitely worse than what it was before the tech bubble bursted, but for qualified personnel, there are still quite some works. However except one or two people, EVERYONE I know has found a somewhat steady source of income since the burst.
Remember, being out of job is only a fact of life in North America, or anywhere in the world for that matter. Don't despair, but adjust your attitude.