There is no such thing as a labor shortage. Their is only a shortage at the wage being offered.
This is exactly right. A lot of employers want someone that is both skilled and will work for little to nothing. This is especially true in the IT field. I know a lot of people that work as contract developers because their income potential is better than someone doing that same job at just one company. And these are people that want stability (i.e. staying in one location for an extended period of time).