By increasing business activity. And that brings more people. No, it's not the people, by themselves. And it's government that decides where all this goes. Probably in response to local residents clamoring to stop the effects of growth in their town.
Job growth increases tax revenue for local government.
Local government encourages job creation and recruitment. More jobs bring more people, who spend money, increasing tax revenue. More people require support such as more homes, more cars on the roads, more kids in schools, more retail shopping, more utilities, water, sewer, etc needed. Market forces, not the government, move in to provide support for the government encouraged growth. Government tries to manage how and where the market will support growth it encouraged through things like single use zoning and detailed construction design criteria.