It has never been lower than position 2. It has been first or second on that list since they started tracking it, as you can see if you scroll down a little bit for the chart over time (which goes back 15 years on that page).
The vast majority of important code is written in C, including new projects today. It dominates few industries, but is present in almost all of them (because when you run into a problem which needs C you have few other options, none of them easier). C# is pretty popular for general business programming, matlab is popular for scientific stuff, I still see a fair amount of cobol for big financial systems, php and like half a dozen others are popular for web development, etc. The thing is they have pretty narrow niches, so while they may be dominant in one industry, outside of that you basically do not see it.
When your problem requires new hardware of any sort, you care about speed, or there is the possibility that someone may be harmed if the program does not work correctly, the language of choice is usually C.
I will also throw out there that I do a lot of code review, and the C programs I am sent have by far the lowest defect rate of what I review (PHP being the worst.)