"I strongly believe there are far more journalism graduates than journalism jobs."
I don't know if that's true either -- but remember that a lot of journalism majors go on to do public relations or development work.
And to continue the dismal outlook: very few magazines have staff writers and many "foreign correspondents" are free lancers like Jill Carroll, given that hardly any news organizations have overseas bureaus anymore. Plus, it's very difficult to make a good living as a freelance writer.
I love my job, but I hope my kid doesn't follow in my footsteps. (Although she is, since she's on her HS paper!)