Capitalist do not pay taxes and therefore pay for infrastructure, the medical sector or public administration. Workers do. So higher wages, are going to improve that.

Also fewer people means less demand for housing and basically the same supply. So prices will fall. That means people will be able to move to the places with the best infrastructure.

Oh and daycare for children is something, which is a fix for this. A kindergarten can take care of say 10children per employee, which allows basically ten parents to work in the meantime. That is a massive leverage.