This is not true in general but it could be true in some areas and certain industry/business. There are certainly areas of the country where there's a huge shortage in labor in general and specific businesses may need very specific skilled labor. Simply raising the rate paid doesn't solve that problem. Moreover, some industry and businesses have had a huge increase in input cost, some have doubled plus due to inflation, fuel cost etc. Sure if you can set your own output price you can raise it with inflation+ and also pay labor more, if you have, little competition. But if your price is established in international markets you can't do that. A business can't continue if not making a profit and variable costs exceeding revenue. There's a point where they just can't pay more. But again sure some businesses may be all digital etc and have no inputs to worry about other than labor, not many though.