Cheap US labor? European and Asian aviation markets are filled with FO's that paid for their type ratings (2-4 times the going open market rate) and then work for 1000-1500 E per month. Some in Europe PAY to fly 320's or 737's till they can get a real job.
A lot of Asian carriers (Indian, Thai, Air Asia, Indonesian carriers et al) do similar pay for FO's, even running cadet programs thru type ratings. The bonds their pilots are on are running out now and those pilots are hitting the contract world en-mass now as well.
US regional pay sucks, but it is 2-5 times higher than a lot of 320 FO jobs in Europe or Asia. A 50 seat Captain in the US makes a similar amount (+-1000 E) to a lot of 737 captain jobs in Europe. Very few US pilots EVER paid for a type rating, and most of the ones that did (Southwest) paid about 5000 USD for a 737 rating, not the 35,000 E Type rating, plus 9000 E base training that a couple of Europeans quoted me for their Scarebus rating.
As far as "cheap labor" invading the contract world, the Asian and Euro imports scare me far more than US regional pilots.