High unemployment creates conditions favorable for the owners. It creates leverage for the owners to coerce the workers into accepting lower wages. A scenario where the state offered full employment as a competitive labor market to the private sector would force the private owners to raise their wages. Then they would have to deal with how they want to approach their profit situation. They'd probably just raise prices of their products. But in the end, the owner is making the decision on what the prices would be. Not the employees.