It can also use monetary and fiscal policy to stimulate demand, increasing the amount of work that needs to be done and resulting in more hiring. A government

It can also use monetary and fiscal policy to stimulate demand, increasing the amount of work that needs to be done and resulting in more hiring. A government can certainly use monetary and fiscal policies to stimulate demand and create more work, but that does not necessarily result in more hiring. For one thing, when there is a surplus of goods (and there frequently is late in a recession and shortly thereafter) the initial demand will be met by that surplus rather than any additional production. Even when that surplus is exhausted, additional demand may be met through through automation. Also, if an industry as a whole thinks that this demand will be short lived, it may choose to either raise prices or simply permit some of that demand to go unmet rather than make large capital expenditures to increase production. Also, normally when a country is trying to "create jobs", its goal is to create jobs for its own citizens. In an increasingly global economy, stimulating demand may increase imports without increasing jobs in the target economy. So, while increasing demand may help create jobs, it also may have limited impact and that impact may take a substantial amount of time to be felt.