I couldn't let this thread go by without throwing my $.02.
Last year, I did not match either. I would say that it IS getting more competitive. I went ahead and did my internship year and re-entered the match this year, but also I called every single program about every 2-3 months to ask if there were any open spots. Of course, I got plenty of "no"s but I did here a few yes. I continued to show my interest in PM&R and I made sure that every program director I interviewed with realized this. I happened to be reading this forum one day and found out that there was an opening. I called, interviewed and was offered an open PGY2 spot for this upcoming July.
My advice:
1. Continue to show your interest during your internship (talk with your PD, take a month working with the PM&R docs at the hospital)
2. Take an honest look at your situation and find areas of improvement (for example, I got 2 new letters this year, one of which was from my current program director [which was VERY important] and I revised my personal statement...also, my board scores were about the worst part of my application so I made sure I discussed this in my personal statement and during my interview)
3. Call programs (you never know if a resident might change their mind after matching or some other situation that might allow an opening after the match)
4. Don't lose faith (if you love the field, something will happen in your favor...if you don't, then you will realize that as well)
Good luck to you and keep your head up.