That's simply pay inflation.

If you want better than mediocre employees then guess what the solution is? More money!

Although mediocre employees can often become great employees with some training and coaching.

> stuck with

Huh?

> you are then stuck with for a long time

Not in the US? I've heard this cited as a reason for very slow recovery in countries like France with strict firing/closure laws, yeah. But in an at-will state in the US, it's not so tough. Sure, firing 20% of your workforce will make the news, but if you're just firing bad employees you can do it on a rolling basis or otherwise avoid the issue.

You don't get to demand a free market out of one side of your mouth and complain about it from the other. When there is less supply and there is more demand prices generally go up.

Well yeah. Because unemployment of 4.3% means your stingy self is competing with a whole lot of less-stingy people for the good employees.