During an economic downturn, quality-of-life suffers. In most cases, company cultures turn negative and employees are constantly reminded that they are lucky to have a job. Employees are expected to work longer hours with smaller or no pay increases. Benefits are cut by employers and workers have to pay more into their medical plans with high deductibles. Employer loyalty is reduced and lay-offs occur more frequently. Unemployment periods last longer because the economy is in decline and jobs are harder to find. All of these facts are combined to create more stress and more financial hardships, which in turn, impacts quality-of-life.
When the economy grows with a 3% to 5% GDP, job creation improves quality-of-life in many ways. Companies treat employees better to avoid high turnover and associated costs. Employers will use retention strategies including pay increases and promotions. They will try to create a work-life balance in order to attract and retain talent. Employees are presented with more job opportunities where they can shop for better pay, better career growth, better benefits, and positive work cultures.
The bottom-line is that this is a direct correlation between economic growth and quality-of-life.