>if demand increases but producers don't need to hire people to produce more, employment does not increase.
If fishes rode bicycles... but they don't.
Productivity growth doesn't change that much year over year:
http://www.bls.gov/lpc/prodybar.htm
And recessions are generally times of low change, since it doesn't make sense to invest in labor-saving technology when labor is cheap.
> production need not be correlated with employment.
In a speculative robot-filled future, that could be true. On Earth in 2012, if you want something done, you hire a human to do it.