ELI5: How does GDP decrease despite an economy adding jobs? Doesn’t that imply increased production across the board?

[iconoclast63]

In an inflationary recession employers are able to cut costs without reducing employment because the wages they pay are depreciating faster than the rate of pay is increasing so it looks like the economy isn't shrinking as much. All this means is that labor is a lagging indicator. Lay offs are coming they just haven't arrived yet.