A friend of mine got my position after my contract ended, and she didn't get extended because the budget cut came down and that position had to be axed.
It really sucks for me, because I was actually considering a job with the federal government after school, but that's out of the question now. I went back and visited a couple of weeks ago and my co-workers told me that outside hiring is pretty much dead at this point. All hiring is pretty much internal at this point in order to save jobs.
Which did you work? Also, at least you got that government gig. Most university grads don't even leave with anything, so having some work experience, especially with the government is a leg up.