How does an increase in skilled labor contribute to economic growth?

An increase in skilled labor helps the economy grow by making workers more productive. When people have special skills or training, they can do their jobs better and faster, which means companies can produce more goods or services. For example, if a factory hires workers who know how to operate new machinery, they can make more products in less time, leading to higher sales and profits. This growth allows businesses to expand, hire more workers, and invest in new technologies. Overall, a skilled workforce drives innovation and efficiency, which are essential for a thriving economy.