Pay and worth are different, just like price and value are. Garbage collection is worth a lot, but its pay is determined by market dynamics. As the number of unemployed increases, it will pay less.
You left out “at the market clearing price”, then described a scenario where the supply of labor increases and the price drops, proving my exact point.
“Worth” and “at the market clearing price” are different concepts, which was my point. The job doesn't pay what it's worth, it pays the market price, which is determined by market dynamics, not how much people value it.
Pay and worth are different, just like price and value are. Garbage collection is worth a lot, but its pay is determined by market dynamics. As the number of unemployed increases, it will pay less.