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.
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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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
"This is the first paper to explore the unique psychological correlates of technological unemployment. As more and more occupations are affected by automation, this is an increasingly important topic.
Now that a new generation of technologies is being adopted, the question is whether similar benefits to well-being will follow, or whether fears of technological unemployment will create new sources of stress, undercutting consumer confidence and spending.
With developments in robotics and artificial intelligence, the imminence of technological unemployment constitutes a serious issue among a significant segment of the workers.
Of particular note, Hang Chuon Naron (Cambodia's Minister of Education, Youth and Sport), together with several principals, participated in the panel discussion "Effective Learning in Preschool, Primary and Secondary Education With Industrial Revolution 4.0." In response to what is known as the Fourth Industrial Revolution--the merging of the physical, digital, and biological worlds ( fourth-industrial-revolution)--N aron highlighted the importance of equipping students with soft skills and addressed the question of how education can deal with upcoming technological unemployment. For this special event, the conference venue was fully packed, with more than 200 people attending.
The longer that older workers remain in the labour force, the more exposed they are to technological unemployment. From an employer's perspective, older workers simply do not have the skills to compete with fresh graduates or younger colleagues.
The first type of technological unemployment takes place when earnings do not adjust for structural grounds, whereas the second one is as an impermanent episode, that is when technological change makes personnel out of work at a swifter rate than they can identify new jobs or such occupations are brought about.
The challenge that we face globally is not about the quantity of jobs -- we do not see massive technological unemployment anywhere in the world, even in the most technologically advanced large economy, which is the United States.
One important observation is that at least so far there is no evidence in the data of what John Maynard Keynes called technological unemployment, (1) either in the EU or any other OECD country.
The prospect of widespread technological unemployment highlights a different relationship between education and technology than that offered by Goldin and Katz.
Technological unemployment is another aspect of this debate, albeit it's darker version.
Mr Haldane added: "Given that the scale of job loss, job displacement, is likely to be at least as large as that of the first three industrial revolutions, we will need even greater numbers of new jobs to be created in the future if we are not to suffer this longer-term feature called technological unemployment. "It has not been a feature of the past, but could it possibly be a feature of the future?

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