Bigger labor pool = downward pressure on wages as well as submissive employees living in fear of losing their job and not finding another one. Slightly better than slavery/serfdom.

I don't know to what extent that logic still applies now that globalization has opened up an endless supply of accessible cheap labor all over the planet.

Interestingly, one of the main reasons feudalism ended in Europe was the plague shrank the supply of available labor. If neofeudalism gets established in today's world, it won't be defeated this time by shrinking the labor supply.

Jack Welch, corporatist extraordinaire, once suggested putting factories on barges so they can be moved from port to port (when workers and/or local governments start making demands they don't like).