It all depends. The main problem is that nearly every tech company is now doing mass layoffs nearly simultaneously. This could lead to long-term unemployment for many engineers, even driving some out of the industry altogether, which could wipe out any short-term salary gains of the past couple years.

Mass hiring distorts the entire job market. It draws people out of safer, more stable jobs. It draws people into the industry from other industries. It draws students into the industry, and into industry-related academic areas. If the gains were only short-term, that's not necessarily a good tradeoff for employees.