I wouldn't necessarily describe this as too many people. But there is an issue of balance and match between the job market and the labour maret.
One also needs to distinguish between overall labour force, and specific skill-sets. Undoubtedly, for some kinds of federal work there will be the sort of manpower glut that results in reams of people having to be processed through the sorts of automated means required to process that many people, in spite of seeming diminished interest in federal work. As an active participant in the IPAC listserv ( http://www.ipacweb.org/ ), I hear all about this.
At the same time, there are those occupations where there is a risk of talent shortage, or at least enough competition between employers or other sorts of mismatches, that hiring managers are justifiably concerned about having a big enough talent pool to draw from. Every year a small, but not insignificant, number of managers will try to staff a position, advertise it for longer than they usually do, and still come up empty-handed. That there are 40 available meteorologists on the west coast who meet your needs does not mean they necessarily wish to relocate to the east coast. Thankfully it doesn't happen a lot, but it happens.