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This certainly stacks up with our experience. As a company ( http://www.feabhas.com ) who has been delivering embedded software training for over 15 years now we haven't seen any drop off in the demand for Embedded C programming.
However the problem we're seeing is that many graduates don't have either embedded C or C++ programming skills. We're seeing the need for more and more conversion from (say) Java to Embedded C++; which is quite a challenge.

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