Labor markets are difficult. If low wages go down further, people will offer more Labor, not less, and your microeconomic equilibrium goes out of the window ver

Labor markets are difficult. If low wages go down further, people will offer more Labor, not less, and your microeconomic equilibrium goes out of the window very quickly. Also, while demand for work is not monopolistic per se, the employer has usually a structural advantage when closing a contract with a single employee, and in some industries only a few very big employers compete on the labor market. If every employer would be allowed to hire exactly one worker, then you could probably do without unions, but that would yield a totally inefficient economic system I wouldn’t want to live in. And therefore modern economies allow unions as an exception from the rule. Otherwise, at least in some trades, wages will go down to the absolute bare minimum, which will lead to political instability, which leads to less economic activity.