Not necessarily. While it is linked to wage growth, the increase in employment (and consumption) doesn't necessarily lead to overall inflation. It depends on the economy's capacity to absorb the extra consumption.

It might be the case that the additional consumption, particularly after a bust cycle with excess capacity, might lead to lower per-unit costs due to the utilization of fully depreciated assets and no need for additional capital investments.

This is usually captured in the NAIRU: non-accelerating inflation rate of unemployment. Or the minimum level of unemployment that does not cause inflation to increase.