Question

A minimum 300-word response to the statement that technological change results in greater unemployment. Also, note what is the most serious type of unemployment resulting from such change and what might be done to mitigate this kind of unemployment.

Answer 1

When advances in technologies and workplace habits lead certain workers to leave their jobs, technical unemployment occurs. Technological unemployment is viewed as part of a larger idea known as structural unemployment.

There is no need for technical transition to raise total unemployment, even if certain forms of employees may lose their jobs temporarily. For starters, the bulk of British workers were engaged in agriculture in 1800. Labor-saving technologies meant that less people could grow food, and so some agricultural workers lost their jobs when more robots were used for farmers.

However, as jobs in agriculture have been lost, new jobs have been produced in the manufacture of computers.

If labour markets are efficient, so recession would not be triggered by technical developments. However, if labour market inflexibilities exist, then unemployment will be induced, at least for a certain amount of time.

For starters, coal miners can lose their jobs due to technological changes. However, they will not be able to take on new work in the service sector because of occupational and regional real estate. (For example, a miner does not have the expertise to work on computers; he does find it difficult to move).

In this situation, technical transition will lead to a transient rise in unemployment, which will continue before more expertise and mobility are built by coal miners.