Moneyzine
Contents
/Careers Guides/Technological Unemployment

Technological Unemployment

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 26th, 2023
Advertiser Disclosure

Definition

The term technological unemployment is used to describe the loss of jobs due to advances in automation and other technologies. Technological unemployment is a form of structural unemployment, which is a permanent shift in the availability of certain jobs.

Explanation

The British economist John Maynard Keynes first used the term technological unemployment back in the 1930s. A component of structural unemployment, technological unemployment occurs as processes that were traditionally performed by employees are automated to some degree, thereby lowering the number of employees required at a given level of productivity.

Automation and technological innovations oftentimes result in more cost efficient processes, fewer safety concerns, and a more consistent level of product quality. The combination of lower costs and higher quality motivates companies to aggressively seek out these opportunities.

Studies demonstrate that job losses typically occur in those occupations that involve routine physical labor and are fairly easy to automate. For example, the internet, email and instant messaging have decreased consumer demand for mail delivery by United States postal workers. In this example, technological advances resulted in the permanent loss of these jobs.

While some economists argue technological advances will result in a sustained, higher level of unemployment, others believe new jobs will develop to absorb these displaced workers.

Related Terms

Related Content

  • Is It Worth Pursuing a Master's Degree?
    In an era where education is synonymous with opportunity, many consider pursuing a Master's degree a surefire way to advance their careers. However, is it really the golden ticket to success we've been led to believe?
    March 21st, 2024
  • The gender pay gap, the persistent disparity in average earnings between men and women throughout their careers, serves as a critical measure of wage inequality. This gap underscores the ongoing issue of income disparity, despite the ideal of equal pay for equal work.
    March 14th, 2024
  • 7 Essential Financial Moves After Losing Your Job
    Navigating the stormy seas of job loss? You're not alone.
    February 23rd, 2024
  • The Most In-Demand Skills to Get Hired in 2024
    Every job requires a combination of vital skills, but what skillset is valued most in 2024? As the job market evolves, staying ahead means it’s key to understand and acquire the skills that employers value most.
    April 12th, 2024
  • Key Productivity in the Workplace Statistics for 2024
    In 2023, global employee engagement saw a slight uptick, with 23% of employees engaged, up by two percentage points. However, a sizable 59% are categorized as disengaged, while actively disengaged employees, known as "loud quitting," declined to 18%. These figures highlight the persistent challenge for organizations to cultivate happiness and productivity in the workplace.
    January 31st, 2024

Contributors

Moneyzine 2024. All Rights Reserved.