Dave,
Regarding recruiters, keep in mind they are never entirely on your side. When they place someone, they get a lump sum which is generally a percentage of the annual pay of the placed person. In other words, engineer at $60k/year will net the recruiter a one time payment of, say 5% or $3k. Those numbers are just guesses, perhaps others can verify. So the takeaway is that they're working for that commission, not necessarily looking for the best company for you. I recommend only using recruiters for maybe 10% of your job search.
The remaining 90% should be you networking to find actual human hiring managers. DO NOT use internet job postings as the only way to find your next job. To learn how to network, read Bob Beaudine's book The Power of Who. Basically, when you are selling yourself (and you are a product), reach out to your circle of friends who care about you and will be willing to help. Contrast that to cold-calling some dude you found on Linkedin. Basically, find a company you are interested in, then go ask people at your church, for instance, if they know anyone there. Don't ignore Facebook, either - which is a perfect example of why you should never have work colleagues as Facebook friends.
One other point about hiring managers: they generally don't actually do their own job searches. They pass it to HR, and HR really don't know enough about the field to find good people. At my last job we had an open Design Engineer role for several months in 2010. Yes, we were hiring after the recession. And HR told us repeatedly, for months, they couldn't find any qualified candidates. This was in Minneapolis, a metro area with 3 million people in it. And they couldn't find ONE. So you need to find the guy who knows the hiring manager. And you have to find someone who will tell the hiring manager that you're awesome. And then you need to be awesome.
Good luck.
Nick