Government intervention is why the problems you're bringing up occur, not due to deflation itself. Think minimum wage laws as the best examples. The minimum wage is already set by how much employers can bid prices to gain employees and the maximum is set by the most that employers can pay before experiencing losses. The minimum wage set by the State fails to take into account the situations in different industries in different regions. This is why you have the problems of replacing workers with AI and outsourcing jobs overseas. Some visas are why the unskilled workers are paid less than skilled as well, due to unskilled workers typically being non-citizens, where the minimum wage is not required.