From what I saw, the job market for software was quite poor in 2001-2003, with massive layoffs and companies going out of business dumping unemployed former employees into the job market. Few, if any, companies were growing. Venture capitalists went from funding everything and losing to fearfully going ultra-conservative and funding hardly anything. The offshore outsourcing business fad also took hold around this time, resulting in more job losses (some companies outsourced more than they should have, but only realized it a few years later to bring the jobs back).
Enrollment in the CS major at Berkeley during that period dropped to the point that the enrollment cap was removed (so that it was no longer necessary to have a GPA higher than 2.0 to declare the CS major). More recently (as software job prospects remained decent despite the 2008-2009 financial and real estate crash that left many civil engineers and architects unemployed), CS enrollment has increased, resulting in the enrollment cap being reinstated (requiring a 3.0 GPA to declare the major, increasing to 3.3 GPA this year).