>its just that they would already be hired by other higher paying companies and what is left for the ones that are looking for the lowest paid possible workers are the incompetent ones

Reminds of me working in IT. One company tried to outsource my job to India five different times before they were mostly successful at it. The companies that are successful aren't the ones that assume it'll cost 1/10th the price, they are the ones that know it'll cost 60+% of the price and still require some handholding.

If you're hiring on price alone, you're already selecting the pool that doesn't contain the most competent labor.