In a recent interview between two macro heavyweights, Eric Basmajian and Bob Elliot, Bob was saying that high nominal GDP was positive to the economy, but Eric pointed out that negative real GDP would mean less units sold, even if the price per unit was higher, leading to less employment and a possible negative feedback loop causing recession.
Eric’s point is only true though if looking at the USA in isolation. Much of the inflation has been from bringing supply chains back home to North America. In this instance, while negative real GDP may mean lower units/volume of goods sold, if those goods were previously made overseas in places like China, it could actually mean more jobs created in the US. Looking at the world as a whole, yes it means fewer jobs, and that is what we are seeing with high unemployment, particularly among the youth in China.