Impact of Technology on Jobs: Unemployment and Technological Change

The impact of technology on jobs and employment is multifaceted and has been a topic of significant debate and research. Technology has brought about both positive and negative changes in the job market, so the impact of technology on jobs cannot be denied. Here in this essay we will analyse what influence does technology has on jobs, unemployment rate and overall economy state.

Technological Change and What Impact Does It Has on Structural Unemployment

Technological change is defined or know as a growth in the productive and proficiency of a products and services that ensue in an expansion in output without an extension in input. Which is to say, somebody originated or devised a goods or action, which is nowthen used to get a greater or higher benefit from the same number or quantity of work. For example, the telephone or sewing machine is among many of the goods that has experience numerous divergent or distinct shifts over the years and that has established it more effectively. Goods such as the telephone and sewing machine, pass through technological shifts in 3 phases. Which are; The invention: which are the making and developing of new product or goods. The Innovation: which is the implementation of the innovation for the first time. The Diffusion: this is how quick others beings to embrace or approve of the innovation.

In the U.S. and many other advanced and developed countries, economists categorized unemployment as structural unemployment: which are due to technological changes; Cyclical unemployment: which are due to “fluctuations” in the business circle; Frictional unemployment: which are due to employees shifting between works.

Structural unemployment signify that employees are fired or dispose from their works because their expertise is no longer required in the place of work. For example, it would be employees that is being substitute and dismissal by the robotic technology firms. Structural unemployment indicates that employees will be removed in the temporary period, while they re-educate and acquire new expertise. In the permanent term, however, the rise in productivity and outcomes from new technology will supply more to enlarged growth that is why governments and economists are ready to provide and supply re-education in the temporary term for the possible development and improvement in the permanent term. And secondly, most governments promote, support and motivate the technological change because it has a bigger influence in the job, place with expanded proficiency, productivity rendition and at the same time obliterating mankind mistake and threats.

Technological change is also promoted and supported by economists and governments because it generates works proficient and skillful employees that can equipped and certify themselves in the convoluted and complicated world.

Positive and Negative Impact of Technological Change on Employment

To begin with positive side, technology has caused a degree of traditional works to decrease or reduce. For example, ATMs substituted some bank works. Also, technology innovations has greatly influenced in the enhanced lifestyles thus consumer protection expands and therefore ensue and develop in more business contingency or chances. For example, the industrial innovation generated more jobs than it terminated. Like the 3D printing technology, building houses by 3D printing is a great technological innovation. However, it will be bringing some job losses in the construction industry at the starting. Although, this technological innovation will ensue in generating more budget friendly and desirable homes, therefore more and more individuals might want to purchase a house. And so, with many users, more houses will be constructed and thereby will generate so many works but of divergent type.

Technology grows productivity and thereby decreases or declines the stress on employees and eradicates the stress of doing tedious and repeated tasks. Which means the employees requires and needs to acquire some expertise to remain working. Which indicates employees should be accorded or granted undivided or exclusive upskill for the freshly improved and advanced works. If the government takes care of the re-training of little expansion is impelling or compelling individuals to repeatedly upgrading their capacity and understanding competent and proficient employees, individuals can take the profit and benefit of the effect of technology on works.

The negative side is found in the proximate outcome of latest technologies as it will be job misplace because some works will become smaller or reduced. Not just the unskilled, and semi-expertise works, even high expertise work is at harm due to the new signal of technologies like “contrived intelligence.” This can decrease the employment opportunities accessible for specialized skilled persons. And the last one is technical to bolster in the job market. Because this can be too overpowering for some individuals to steady work and their personal life.

What is the impact of technological change on future production?

• The period of smart machines grips much pledge, with smart policies, the future manufacturing can possible be one of the vigorous and more overall growth.
• New digital technologies extra and extra dispense into the economy. Due to this digitization, apparatus become progressively able to accomplish tasks that before only mankind could do.
• In the near future, technological change on future manufacturing will aid individuals to do away with reliance on “fossil fuels,” and accept and green energy solutions.

Impact of Structural Unemploymen on Economy

Technological change is the most significant element that control the rate of economic growth. The method of economic extension requires the growth in the production of goods and services. Enlargement in production can be obtainable either through the use of additional resources and through the awareness of greater productivity by measures of using the resources of labor, capital, and land, more productive. technological change in economy aids to empower and promote growth in both these ways, it can assist in the finding of new natural resources in the nation and therefore increases the productive possibilities of the nation. Technological change can also impact the economy through the supplying of stronger apparatus, ameliorate methods, advance skills.

Policy recommendations: to lessen or recuperate structural unemployment should incorporate supplying and support government reskilling or upskill programs to the structurally workless, spending stipend to industries that supply upskill to supplant employees aiding the structurally workless to shift to areas where works survive or remain and persuading oncoming employees to purse or renew their education.

Labor market pliability: available market economists set bigger burden on ameliorating labor market pliability. For example, allowing temporary job supply numerous opportunities for the workless to acquire new possibilities (Pettinger, 2019).

Final Recommendations

However, government beyond the global world should endeavor to redeem this structural unemployment by having directives and policy substitutes to change the conditions. This unavoidable event can be rectified by guaranteeing the expertise gap generated or caused by the technology development is reduced or lessen. For example, the acts supplied and encourage job upskills programs as part of the NAFTA to lessen unemployment. In other words, the industries should encourage and support domestic training domain to lessen the breach caused by the technological change.

References

• Ayesha, J. (n.d). Blog. Technological Progress and Economic Growth| Economic. Retrieved https:www.economicsdiscussion.neteconomic-growthtechnological-progress-and-economic-growth-economics30156
• Pettinger, T. (2019, August 7). Structural Unemployment. Retrieved https:www.economishelp.orgblog27657unemploymentstructural-unemployment
• Team GD, (2019, August 30). Blog. Impact of Technology on Jobs. Retrieved https:www.groupdisscusionideas.comimpact-of-technology-on-jobs
• Acemoglu, D., & Restrepo, P. (2019). Robots and Jobs: Evidence from US Labor Markets. NBER Working Paper No. 24269. doi:10.3386/w24269
• Brynjolfsson, E., & McAfee, A. (2016). The Business of Artificial Intelligence. Harvard Business Review, 94(1), 62-72.
• Muro, M., & Maxim, R. (2017). Who Are the Robots? A Taxonomy of Automated Work. Brookings Institution. Retrieved from https://www.brookings.edu/wp-content/uploads/2017/01/who_are_the_robots_final.pdf
• World Economic Forum. (2020). The Future of Jobs Report 2020. Retrieved from https://www.weforum.org/reports/the-future-of-jobs-report-2020