How do unregulated markets cure a labor shortage without immigrants?

The phenomenon of unregulated markets addressing a labor shortage without relying on immigration primarily hinges on the dynamics of supply and demand. When there is a labor shortage, employers are often willing to pay higher wages to attract workers and fill available positions. Allowing the price of labor to increase serves as an incentive for individuals who may not have previously considered employment to join the workforce.

Higher wages can encourage existing workers to put in more hours, attract individuals from different sectors, and motivate those who were previously unemployed or underemployed to seek jobs. By raising the price of labor, the market adjusts to signal a need for more workers, thereby leading to a more effective allocation of resources and meeting the demand for labor in the economy.

In contrast, decreasing the price of labor or limiting job positions would not address the shortage effectively and could exacerbate the issue by discouraging job seekers or leading to fewer job openings. Thus, rising wages serves as a crucial mechanism through which markets can respond to labor shortages.