You do have a better chance of getting a job if you go to a smaller school. While a small school may not have the breadth and depth of programs that a large school does, you have more of an opportunity to know and network with your professors. They know a lot of people in their field and could help you get a job after you graduate.
The advantages given to you by going to a smaller school greatly outweigh the possible financial benefits of a larger schools budget. The one on one time and personal attention from faculty is far more invaluable than a well supplied lab and no one to show you how to use it properly.