How does strong job creation lead to higher output?

Question

growth in an economy helps in job creation. so how does job creation brings about higher output in that particular economy?

Answer 1

More jobs lead to more production (output)

Answer 2

Strong job creation has two important effects on the economy. First, there is the supply side. If more workers are working, then production of goods and services will increase, unless the workers that are being hired are completely useless.

Second, there is also an important demand side component. If there are more workers in the economy, there is more income being earned. This means more demand for consumption.

In the end, the demand for more goods must equal the supply of more goods. Price changes and wage changes will play roles in making demand equal to supply.

Answer 3

If you are creating jobs, what are you going to pay people to do? Sit around twiddling their thumbs?

No! Of course not. The newly created jobs are created to produce something. Income for the economy. Logically a higher output for the economy.

Answer 4

Generally speaking, it doesn't.

Job creation usually refers to MORE jobs being created. Not necessarily good jobs with good pay. Also, those new jobs aren't necessarily productive within economic terms.