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eli_sennesh comments on Unemployment explanations - LessWrong
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Which then pushes up the cost of living in their immediate area, making the salaries they do pay not go as far, forcing up their labor costs to attract good employees...
(LOOKING AT YOU, BAY AREA TECHNOLOGY SECTOR...)
Unless I'm parsing it wrong, recruiting from outside your local area would drive the cost of living up, not down. For the present, most jobs still require physical presence from the employee, so recruiting from outside the local area would create a steady population of people who need to move to the local area and are willing to pay a modest premium to do so quickly.
Yes, that's exactly what I was saying.
Your comment above is saying the opposite thing.
Currently, most companies don't recruit people from distant places. They hire from the local population, which means that for the most part, hiring moves people around a local area and doesn't create price pressure unless the local industries are growing significantly or salaries are increasing significantly.
If companies started hiring globally, there would be increased pressure on prices as the locations of successful companies had a steady stream of people moving in.