Listen guys, some of you:
In the 'old' days airlines, pilots, were in the main staffed by pilots who had perhaps learnt to fly during WWII. In those days travelling by air was for the priveliged minority and the cost of air fares reflected this.
Times moved on, inclusive tour holidays commenced etc, new airlines sprang up, charter operators, operators had previously provided pilot training at the operator's expense and this was continued.
To bring it up to the current time many, many, many people are travelling by air, over recent years, with the introduction of low cost carriers, the number of people travelling by air has escalated thus the requirement for pilots has escalated also, only 20 or 30 years ago a pilot may expect to occupy much, if not all, of his career on turbo-props, now young guys are walking straight in on to nice shiny jets.
BUT, the only reason why so many people are travelling is because the air fares have been reduced to such a level that allows them to and it is these very people that have created the jobs for the pilots, they wouldn't otherwise be travelling, perhaps they cannot otherwise afford to, thus if the air fares increase they stop travelling and the requirement for pilots stops also and this applies to non low costs carriers also, they have been forced to find themselves in competition with LCC's.
So there we have it, increase the air fares to incorporate for pilot training costs = fewer passengers = fewer pilot jobs.