technological unemployment

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Technological Unemployment

Unemployment that occurs because advances in machinery renders workers redundant. For example, a machine that mass produces shoes may cause a cobbler to lose his business. Technological unemployment is the result of a disparity between the collective skills of the workforce of an economy and the skills necessary to perform the available jobs. As such, it is a type of structural unemployment.

technological unemployment

UNEMPLOYMENT resulting from the AUTOMATION of production activities. Automation serves to improve labour PRODUCTIVITY, reducing the labour needed for making and distributing products, so some labour may become unemployed. If demand rises as a result of reduced costs and prices of products, labour may not be made unemployed, the same labour force serving to produce a greater output (rather than a reduced labour force producing the same output). In addition, technological change can serve to make particular labour skills obsolete. Government assistance schemes and retraining of labour can alleviate the problem of technological unemployment to some extent. See STRUCTURAL UNEMPLOYMENT, TECHNOLOGICAL PROGRESSIVENESS, SUPPLY-SIDE ECONOMICS.
References in periodicals archive ?
In the resulting vacuum, protectionism, anti-trade populism, and illiberal - often xenophobic - nationalism have gained ground, fueled by anxieties about stagnant wages, technological unemployment, and rising insecurity.
Many economists, now pessimistic about technological unemployment, accept that the so-called compensation effects of new technologies (i.
History and economic theory, however, suggest that anxieties about technological unemployment, a term coined by John Maynard Keynes nearly a century ago, are misplaced.
and technological unemployment will continue to put a growing number of local workers at risk, according to a Korean human-factors expert.
Consider the historical record: If the nightmare of technological unemployment were true, it would already have happened, repeatedly and massively.
Keywords: Singapore, automation, computerization, industry employment, technological unemployment.
However, unlike the 1930s, the technological unemployment of this decade is likely to be of a far serious order, and one that cuts across every conceivable sector - from e-commerce and manufacturing to banking, agriculture as well as IT services and BPO.
This present conceptual paper contributes to the current debate over robots, technological unemployment, and youth job futures (see Peters, 2016).
Some argue that IT appears to be advancing much faster than previous technologies, and assert that we are on the verge of a dramatic increase in technological unemployment (Brynjolfsson and McAfee 2014).
Concerns regarding technological unemployment spiked during the Great Depression and post-war recessions, but dissipated after economic growth rebounded and unemployment fell to normal levels.
This orthodoxy is now being widely questioned and the possibility of accelerating technological unemployment has now become a widely debated topic of discussion even among such mainstream organizations as the OECD, World Bank, and the World Economic Forum meetings in Davos, Switzerland (Brinded, 2016).

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