When supply of talent availability outweighs demand for the talent, wages go down or remain flat. McDonalds, Dairy Queen etc all have an abundance of high school aged kids to work the counter every year as an example of ample supply and relatively flat wages.

When demand for talent out paces the supply then wages should generally continue to rise until some equilibrium is established. Tech is on the rise side of this. A side affect is it has made it harder for small businesses to afford senior engineers. Many companies are also playing games primarily using foreign workers that essentially is manipulating supply which allows them to control wages.

There are of course other reasons an employer could be priced out of the market or unwilling to pay market wages of course. Maybe they just can't afford a senior engineer because their business isn't mature enough, it happens so they need to get creative. e.g. Use an outside firm or hire an individual who has less experience and hence has a lower cost.

Sure it is. At the price set by supply and demand, that employer is priced out of the market.