Jobs = power for politicans. A team of ten people that does the work of five people is five jobs that state legislators and high level bureaucrats can phone in "recommendations" for resulting in five big favors owed. A team of five that is paid like ten and does the work of five is a direct threat to their power and they will fight it tooth and nail.
I like the idea of fewer better paid jobs but I have no idea how we transition the current status quo from here to there.