Indeed the labor conditions of young researchers are not great here either, but it is because of the poor perspectives for the future rather than because they are not paid enough.
People need to spend a lot of time writing applications, and to work many extra hours to be able to do some research.

In this context, I would not look for reasons for people to stop applying : it is only natural that at some point there will be less applications due to there being too many of them to start with.
After all, what they call a shortage is receiving 28 applications for one position.