Depending on your definition of temporary - as Keynes said “in the long run we’re all dead.” Eventually things will work themselves out, but how many years of self-imposed pain will it take? Employees are going to be much less likely to quit in a tight job market, especially if they’d be paid less at their new job (since, per your example, new hires would be paid less). If you’re waiting for employees to die (or retire, and they’re more likely to retire late in a tight job market), you’re talking about a price correction that happens once every several decades.