>Working conditions are such a major aspect of any job
So they need to increase compensation even more to account for these aspects of the job. If they can't fill the position, it is because they aren't paying enough for the job. I don't see how anything changes except that employers don't want to admit that their jobs suck so much more than similar jobs that paying even twice the amount doesn't pull people in.
I think the major difference is that, if you're in this regime where you're getting diminishing returns on increased pay, for the employer it can be a lot more cost-effective to improve working conditions.
Trucking companies paying drivers 30-50K/year are probably not in this situation; software companies got there a long time ago for engineers.
So they need to increase compensation even more to account for these aspects of the job. If they can't fill the position, it is because they aren't paying enough for the job. I don't see how anything changes except that employers don't want to admit that their jobs suck so much more than similar jobs that paying even twice the amount doesn't pull people in.