If the law of Supply and Demand dictates that high demand + low supply = higher prices/rates, why aren’t companies/industries suffering from large scale labor shortages offering suitably higher wages to mitigate the shortage? Contrarily, some of them seem to be figthing this obvious solution tooth and nail. Shouldn’t any businessperson worth their salt realise the labor market has changed beyond their control?
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There is no such thing as a unified “labor market”. The market consists of many employers spread across a variety of industries, with each industry requiring workers of different skill sets.
Skilled workers have almost always been in demand and their salaries are rising accordingly. It would take a fair bit of time for wage pressures to rise for the lower skilled workers since the supply there is typically fairly robust.
In times of consolidation, employers are more likely to compete for the highly skilled and experienced. A few will naturally decide to upskill some workers and there are going to be opportunities there.
It is rather unlikely that workers who are no longer capable or willing to train themselves will see large wage increases. As with many things, those that are willing and able will reap the most benefits.
It is also likely that many businesses will pursue efficiency and better productivity tools and methods. This will spur more employment for the skilled and reduce demand for the unskilled.
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