Lets not forget that Microsoft was one of those companies that looked at cutting wages down by hiring temporary employees but never bringing them on as an actual employee, aka "permatemp."
A quick look on monster.com also reveals that there are some majorleague bullshit reqs going on for nearly all tech positions and even ones requiring a bunch of unreasonable bullshit are barely paying anything. I was looking about 6 months ago and a company was paying $40k a year (which is low, even for Texas) for someone with 5+ years experience as a MySQL DBA and they wanted the applicant to have knowledge of a proprietary system that there's no way one could know it unless they worked at that company. So either the job was tailored for someone (and they were paying them about 40-60k below average for a mysql DBA with that much experience) or the market isn't bad.
Seeing as I have quite a few IT friends that cannot find jobs, I'm going to go with the market not being that bad.
MS is just wanting to hire cheap labor, which is pretty much what ALL of the IT industry is doing these days, save a few companies.