This paper extends the analysis of balanced budget multipliers in the context of the standard neoclassical model by looking at the effects of changes in public sector employment. I look at the potential for multiplier effects associated with changes in the level of steady-state government purchases and steady-state government employment. As is well known, with endogenous capital, output may increase more than one for one when the steady-state level of government purchases changes. This is not the case when government employment increases.