Improved job numbers but downside risks remain
In his magnum opus, The Wealth of Nations published in 1776, the Father of Economics Adam Smith argued that the enlargement of production rather than the trade sector would create greater wealth for the country.
As it is, the four factors of production namely labour, land, capital and entrepreneurship are the essential inputs which allow the production of goods and services. These factors are considered the building blocks of an economy, intricately interwoven to keep the wheels of the economy spinning.
The importance of labour in an economy could not be stressed enough. Economists believe that a quality workforce will drive economic growth by way of higher productivity and innovation. Workers in turn enjoy better living standards by way of higher wages. The higher wages would in turn boost consumer spending and create demand for goods and services provided by firms.
