Earlier quoted context omitted.
You normally write very clearly, but I have no idea what you're getting at with this particular comment. Is any of this sarcasm? Are you sincerely suggesting that not being able to find someone to work for 1 cent per hour means that there is a labor scarcity? What's this business about public funding of municipal infrastructure and how does it relate to the conversation at hand?
Scarcity means that a resource is limited and has an opportunity cost, so, yes, of there is any minimum cost, the resources is scarce.
So, under this definition there is always, almost tautologically, a scarcity of labor. The word has little meaning, and discussion of whether or not there is such a scarcity becomes irrelevant to decisions about things like public welfare or economic policy.