The Seattle job market sucks, like everywhere else. Sorry.
Housing is a little pricey but has gone down a bit due to the sucky economy. Certain areas are much more affordable than others, but usually the cheap areas are run-down or have some crime. I don't know if you're looking to live in Seattle proper; some parts of the city are much nicer than others (avoid south Seattle if possible). Some of the suburbs are nice & more affordable, such as downtown Issaquah which has a good trail system if you're into the outdoors @ all...it is about 20 minutes from downtown Seattle depending on traffic (& yes there can be some pretty bad traffic issues around here!). Good luck!