How is EMPLOYMENT generated?

Question

How is EMPLOYMENT generated?

Answer 1

It is created by people spending money and working. When you spend money at an electronics shop, clothing store, restaurant, etc. You give the business money, and they are able to pay there employees, and may result in hiring additional workers due to increased business. More people working creates less workers for business' to choose from, which increased wages. This continues on with people earning money and spending it, creating additional jobs and employment.

Answer 2

There is a thing called NAIRU. It is the natural rate of unemployment. It is about 4.5% in the United States, and it is natural in the economy. Above that, any unemployment is a bad sign.

NAIRU can be lowered by investing in education, training, and infrastructure. The more educated and productive the workforce, the lower you can take the natural rate of Unemployment.

hope that helped

Answer 3

Through innovation - people invent new services that people want,  And invent new technology too.

Its also grown by adding new jobs in these new fields that are not simply replacing old jobs.