I believe the answer is: The government controls where people work and what the are paid.
The government control where people work by creating a protection on territories that is crucial to for the ecosystem, (such as area near water reserve or forest). The government control what are paid by creating the minimum wage law that must be followed by all businesses.
Theoretically, centrally planned economics can overcome market failure. According to that, when there is a free market economy, monopolies exploit consumers and labour. However, centrally planned system favors fair distribution although it has been criticized for the economic calculation and data shortage.
