I understand the analogy. Gas is a liquid, which conforms to the container. The problem is that not all gas is used. When there's excess, the value tends to bottom out. I don't think it's like fuel to a fire, where the fire will grow in correlation with the amount of fuel.
In a constrained market (like where I have moved to with a 150k people), wages are suppressed locally by excess labor, as one would expect. College kids come in, increased wage posters go up. College kids go out, increased pay posters go up and wages do not meaningfully stay up. I've observed for years and tried to make the argument to get struggling family to move to this area, where the competition is lighter and the costs are lower.
Job lines are a thing. Massive stacks of resumes, are a thing. Competition is a thing. If competition for labor didn't matter, everyone would aspire to be a crappy tradesman, because the wages are better than McDonalds. Sector growth is not instantaneous (measured in years or decades) or uniform in growth.
