This is correct and yet kinda misses the point. The market exists specifically because of one of the most fundamental and basic of government functions: who is allowed to enter the country and work. Those market economics revolves around whatever the government decides to do: firstly when it created the H1B system and now when all the politicians are arguing over how to handle the abuse of the program.

I’d call it something more along the lines of “regulatory capture” than a freely operating market.