If there's sufficient demand, that's just what happens. To try and explain one path: Company A doesn't raise wages but makes 5% more money. Company B pivots fr

If there's sufficient demand, that's just what happens. To try and explain one path: Company A doesn't raise wages but makes 5% more money. Company B pivots from Industry B into construction (because suddenly construction is having 5% fatter margins), and hires workers at more competitive wages to poach them from Company A. Company A forces to raise wages. If there's a demand ceiling on housing it's a different story though.