We often see that GDP (Gross Domestic Product) of a country increases, but there is no actual development of the national economy as a whole. The reason behind this is that the income level is increasing but the increase is only spotted at the richer section. However, the economic growth and the employment scale of a country are both complementary factors for each other. In other words, both the forces go hand in hand. Employment scale determines the level of economic growth, in the same way, we can measure the level of employment with the prevailing economic growth in the economy.
Following are the positive signs that stimulate economic growth along with the employment level:
Higher rate of consumer expenditure
When a country’s economy improves, it accelerates the employment level stimulating economic growth. When the overall economy improves, it enhances consumer spending in the market. Consumer spends more on goods and services resulting in a better standard of living.
Higher economic growth stimulates a higher employment level
No doubt, when the economy of a country goes good, it also stimulates the employment level in the economy as a whole. Obviously, when the employment level of a country goes up, it stimulates the overall development of the nation and builds a prosperous career path for the youth. Thus, higher economic growth accelerates the employment level and vice versa.
Increase in the availability of capital for industries
When employment level and economic growth both improve, it positively affects the industrial sector. As the availability of capital induces the overall productivity in the industry, the economic growth boosts the overall capital availability inducing the productivity level in the business enterprise. Here also, economic growth plays a major role.
Better marketplace for emerging products and services
When the economic growth and employment level of a nation accelerates, it serves a good marketplace for the trading of new emerging goods and services in the economy. When a country’s economy goes up, it opens new gateways for upcoming products and services in the market.
Reducing the rich-poor gap in the economy
An uplifted economy automatically reduces the gap between poor and rich. And the economy improves when there are more employment opportunities, more growth prospects, more earning scale for the poorer section of the economy. Here, higher economic growth induces a higher level of employment scale and also tends to reduce the sectional disparities in the society.
Increase in the number of employment opportunities
There is a direct relationship between economic growth and the scale of employment. That’s why, when the economic growth of a country goes up, it ultimately boosts the number of employment opportunities in the economy giving more employment exposure to youth and arising workforce.
Stability in the market demand and supply of the commodities
Increased employment scale with accelerated economic growth provides the stability of the market demand and supply of the commodities as a whole. We know that fluctuations in market demand and supply make the economy unstable, so when there is economic growth, it implies that there’s stability in the market forces.
An upward trend in the GDP of the country
It is very clearly understood, when a country has a good report for its economic growth, its GDP will also show a positive or upward trend. That is why, GDP and economic growth are directly related to each other. If one factor is positively affected, the other will foresee the same impact and vice versa.
All the above-mentioned points clearly state how economic growth and employment level both are affected by each other in a nation’s economy. Secondly, there are various market forces that play a major role in a country’s overall economic as well as financial growth. Consequently, when a country’s economic growth improves, it boosts the employment scale in addition to it. Hope this article met your reading desires. Feel free to share your feedback.