How would that work in the case where the employers have the majority of the bargaining power? What motivation is there to keep pushing up the wage? It would seem to work if the employer is choosing only one potential candidate, but in reality employers have an almost constant supply of people who are able and willing to work for almost whatever the employer is asking for. Almost never will two employers go head to head to bid over a candidate.
This is precisely why labour unions exist, because the employer owns the means of production and the employee does not.
In theory there is never an infinite supply of employees, and at a certain point you run out of people that will work for $x.
In practice that's not a question that can be answered in one comment, and right now it depends on who you ask. In my mental model of the world that's where the perfect simulation starts to break down and run into real world constraints.
I mean - if we're talking zero-friction circular cows, then if the unemployment rate is over 0%, there are more employees. The unemployment rate is always well above zero.
But there may not be employees willing to take that job at
That price with that skill set. The unemployment rate now is zero, but if I'm trying to hire a machine learning engineer for $10/hr I'd have a hard time.
This is precisely why labour unions exist, because the employer owns the means of production and the employee does not.