Earlier quoted context omitted.
As someone who's recruited heavily at the entry level, you're mistaken. Even substantial number of computer science graduates lack the capability of basic coding (i.e. "here's the detailed specification of this function; go implement it"). There is substantially more demand than available talent. SF, New York, London, Amsterdam, Berlin, etc. all have huge talent shortages. Even developer markets that were relatively…
For London I strongly disagree. When start-ups, profitable ones, are offering £35k + bonus + stock options (worth £0), for senior developers, in Central London, there's not a talent shortage. Similarly skilled developers are getting £35k+ & bonus outside of London, where the cost of commuting/living is significantly cheaper, in established companies with full benefits packages, that don't expect them to work 50 hour…
While there are certainly companies trying to hire iOS developers at 40k, there are also companies trying to hire iOS developers on 80k+ and iOS contractors on day rates of £500/day.
What you're probably seeing is selection bias. That is the crappy jobs (i.e. low pay) stay on the market far longer than good jobs. Hence you end up thinking that crappy jobs represent a large proportion of the job market than they actually do simply because they stay around longer.