Reaction: Increasing Payrolls

I think a lot of increase in payrolls has to do with education. The college attendance level has been increasing steadily over the years. And that means more and more people have qualifications and are able to perform their duties better. This means better efficiency for the firm, which means higher profits for the firm. And a part of this profit eventually goes back to the workers as a pay rise and therefore the increase in payrolls.
I agree that this is good for the economy since the workers have higher purchasing power which will stimulate the economy, and as long as the increase in purchasing power does not cause inflation.