Unemployment and technology

The purpose of the article is to examine how unemployment affects technology. Technology changes have an impact on the workforce, and many scholars both domestically and abroad have recently concentrated on this issue. Automation machines, which are capable of carrying out jobs that were previously done by humans, are one example of how technology is changing. Additionally, these automated machines are considerably more effective, efficient, and quick than people at completing these tasks. According to BLS research, the labor force was first affected by technical advances in the middle of the 19th century (Jerome 26). The available literature reveals that there exists less research about the impact of technology on the level of employment, therefore, the researcher seeks to disclose how technological development leads to unemployment in the society.

Background of the study

Studies on the impact of technology on the labor force present varying deductions. Some researchers connote that technological developments have accelerated the rate of employment creation thus availing many people with jobs. However, Jerome lays assertions on the matter in which he asserts that technology has had a negative impact on the level of employment, and consequently led to unemployment in the society. The rate at which the industrial sector is growing in the 21st century is much higher than the preceding centuries (Rogoff). The growth is accompanied with an advancement in technology where Robots, electronic computers, flexible manufacturing machines (systems), and such other technologies have been introduced to effectively produce quality products that can compete in the international market. These electronic systems have successfully replaced human labor, and therefore, the people that previously worked in such sections as manufacturing, packing and others have been laid off.

Literally, it implies that a large section of the labor force in the modern industries is replaced by machines therefore, if there isn’t any other sections created within the industry, the people become unemployed. The increasing technological advancements and development would mean increased level of unemployment. Attempts are being made to ensure that technological developments simultaneously increase employment or else, few of the empployees should be affected. It worth noting that expansion in technology is because of a country’s zeal to expand the expand their economy. This implies that the investing in new technology ought to take place when there is an expansion in the level of employment, otherwise, the employment sector is affected. Capital intensive techniques that tend to employ more machines than human labor to do work have a significant impact on the level of employment, as these machines totally displace people and continue to perform similar tasks. The goal of the capital intensive method of production is to increase the capacity of production by the industry such that it gains momentum enough to supply and feed the ever growing market both local and international.

Instances where technology has replaced human labor include sections such as watchmen that have been replaced by CCTV cameras, gatekeepers who are replaced by robots, machine operators who are also replaced by robots and many others. With such expanding technological development, it is not certain as to which direction the labor force is taking in the centuries to come. In the packaging section especially on the factory floors, advanced equipment that handle materials, computer process controls plus many other innovations have been put in place to monitor mechanized production (Jerome 28). Olivier Blanchard (2008) connotes that technological change leads to creation of new and productive jobs. The new jobs raise a concern on the formerly existing jobs that previously employed the old fashioned technology. With the introduction of new technology and new methods production, the labor force expects the wage levels to go higher. However, despite the increase in the wage rates, the labor force that previously employed the out-fashioned technology has to be closed. Evidently, the closed labor force remains unemployed if there are no further innovation made that would incorporate them in the system of work (Blanchard 3). Studies indicate that technological advancement is another form of dehumanizing humankind. Although many researchers argue that thinking about technology in a way that dehumanizes humankind is a flatty error, findings bring out a clear conclusion about the phenomenon in which many people have lost their jobs, and those that still have them in the manufacturing sector are also liable to lose them (Mabry and Sharplin).

The literal meaning of technological advancement attaches value to production of more goods and services. Although it comes along with better knowledge in production, technological advancement makes many people idle at work. For instance, the modern systems hardly require a stand-by electrician (Mabry and Sharplin). It would imply that an electrician whose work has been reduced remains idle, even when he appears to be employed. Unemployment takes different modes, where there is frictional unemployment in which case the individual who has been affected by the introduction of a machine switches from that section to another (Mabry and Sharplin). As the definition of unemployment clearly stipulates that the individual could be willing to work even at an ongoing wage rate but finds nothing to do, people that have been left out in the manufacturing and other sectors that embrace technology in production fall victim of the circumstance. It is evident that technological developments drive long-term growth, development, productivity as well as improving the standards of living of the people. However, the phenomenon is as well destructive. A report released by the Organisation for Economic Co-operation and Development (OECD) presents empirical findings that reveal the extent at which new technologies are destroying jobs especially for the low-skilled persons. The report connotes that many nationals from various countries associate technological changes to unemployment, and that such connotations are right to some extent.

The changes brought about by technological advancements exacerbate the semi-skilled and even to the skilled. The reason is that many countries tend to embrace new technologies before having adequate plans for their labor force. Their driving force is the increasing market of goods and services, therefore, their focus is produce as much as possible to feed the market. Many questions emerge as to where the employment of such countries would lead if they continued to produce without expanding their economic muscle as regards to the level of income of the people. It is the local market that boosts the economy, and once the people are unemployed, they will not have a high purchasing power due to the less or no disposable income (OECD). Therefore, even if the production is increased, the economy might remain stunted due to the high prevalent levels of employment. There is therefore a need for the modern advancements in technology to incorporate the rising job market demand. The new and modern technologies cater for a specific group of people, the highly skilled. Many jobs have been and are being created for the highly skilled, as witnessed in the rising demand for data analytics, Informational Technology specialists, e-tutors and many other fields. It is those with modern skills who have gone through training that can benefit from the modern technology era (World Bank Group). The less privileged are the semi-skilled whose jobs are increasingly being replaced by machines and robots (The_World_Bank_Group). Studies further reveal that with an increase in the level of technology, even the skilled work force is prone to suffer. Prof. David Dorn, while addressing the impact of technology on the labor market in the past, present and future asserts that even the highly skilled personnel is likely to be replaced with the new computer technological advancements. Therefore, the future is liable to experience higher levels of unemployment than the present, and therefore, if economies do not check the compatibility of the technological changes with their labor markets, citizens are to experience high unemployment levels (Dorn 10). Although it boosts production and efficiency, technological advancements had a negative impact on the level of employment therefore, economies should find a balance between the technology adapted and the job market for their citizens.

Problem statement.

The world has experienced increasing levels of unemployment for the past decades, and the rate is on the increase each year that passes. Research indicates that among the reasons behind the increasing levels of unemployment include the high population growth rates in relation to the available jobs. Besides, the exhaustion of natural endowments has had an effect on the growth of the industrial sector. However, technological advancements have had a huge impact on the level of employment. The world’ economic systems began experiencing technological advancements in the 19th century, although it was a lower level. Over the two centuries, the 20th and 21st centuries, the level of technology has been growing arithmetically. New automated machines have been invented to perform tasks that were previously handled by human labor. Robots have been employed in places such as operations in industries, offices and even at receptions. This would imply that machines would now execute such jobs that were primarily occupied by humans. In addition, the highly skilled labor force has also felt the impact of technological advancement. Several intelligence companies have embraced the use of robots and other intelligence machinery that employs computers and microcomputers to accomplish tasks. The future of the job market is somewhat uncertain, and consequently unpredictable. It is hard to tell whether in the years to come, humans will have any offices to hold, and or any technical work to do in offices and industries. It started with replacing manual labor, and now, automated machines, which, many employers and investors believe they are much effective in executing the tasks that they are assigned, predominantly occupy technical fields. Therefore, there is a reason to invest in research on how technology and technological changes are likely to affect the job market and consequently cause unemployment. On this note, this paper seeks to investigate the impact of technology on the level of employment now, and in the future.

Review of existing literature

Studies conducted in the impact of technology on the level of employment deduce with varying conclusions, however, facts portrayed by the majority show a negative trend which technology is taking the job market. Despite the fact that companies have registered a high degree of saving in labor force with the developments in technology, humans have suffered the much effect (Brugman 11). While addressing the impact of the advancements in technology, Mick Mountz, the founder and CEO of Kiva connotes that robots are real devils in taking away jobs from human beings. He further asserts that if the rate at which robots are replacing humans at work is not checked, the world is likely to experience a situation where it automated machines and robots doing everything, right from security, intelligence, operations to welfare (Brugman 13). Mick concludes that there would not be any reason as to why an employ should not use one robot instead of wasting resources and spending much wages on ten workers. Besides robots and other automated machines, most of the modern businesses are going electronic where the customers make their transactions online (Darrell). Besides online business, technology affects the mode of production in which case consumers attach a greater value on products produced with modern technology than those that are manually made. As a result, industries that cannot employ such modern technologies will lose market for their products, and the result will be failure. Consequently, employees of such companies become unemployed.

References

Blanchard, Olivier. Technological Change, Productivity Growth, and Unemployment. Study. New York: Olivier, 2008. Document.

Brugman, Tony. Imapact of Technology on the Future of Work: Inspiration Pack. Research . New York: Bright Company, 2014. Document.

Darrell, West M. What happens if robots take the jobs? The impact of emerging technologies on employment and public policy. Research. New York: Brookings, 2015. Media.

Dorn, David. The Labor Market Impact of Technology: Past, Present and Future. Research Study. Madrid: CEMFI Madrid, 2013. Document.

Jerome, Mark A. “Technological Change and Employment: Some Results from BLS Research.” Bureau of Labor Statistics (2000): 26-29. Document.

Mabry, R.H and A D Sharplin. Policy Analysis: Does More Technology Create Unemployment? Study. Louisiana: Cato Institute, 2006. Document.

OECD. Technology, Produtivity and Job Strategy. Research Study. New York: OECD, 2012. Document.

Rogoff, Kenneth. The Impact of Technology on Employment. Study . Harvard: World Economic Forum, 2012. Document.

The_World_Bank_Group. Effect of Technology on Employment. Study. Istanbul: World Bank, 2015. Document.