Technological Impact On Employment

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economic growth by reducing the cost of production, it can also impact negatively on the employment. Kimberly Winston explains a technological change in economics as an increase of the efficiency in the production process that increases output without an increase in input. That means any invention that improves a product or a process of production that results in a bigger reward for the same amount of work. This technological change impacts on the level of Structural unemployment. Rittenberg and Tregarthen (2012, chap 16) state that the Structural unemployment happens when businesses are looking for workers and unemployed people are looking for jobs but the requirements for the job do not match with the skills of the workers. And these scholars…show more content…
By using machines for instance in mechanised production it is visible the cost of production reduces and communication facilitated by the change in technology also contributes to the growth of economy in a sense that if ordering product from a firm was taking days to reach the producer, today the order is instant. This is another way of reduction of the cost of production that results in more savings and new investments using the capital saved, due to the use of technological means. Gordon (Sep 11,…show more content…
Washington post of Mars 6, 2011 suggests that in order to avoid it, the government should maintain an efficient social safety net for the long-term jobless while focusing more effort on readying workers to take advantage of opportunities when they do emerge. The way to do it according to the journal is to reform education, including job training and retraining for the long-term unemployed, to endow the labour force with new skills and permit workers to maintain their jobs. The journal proposes also the application of fiscal and monetary policies like cutting taxes. These policies are necessary because the portion firms recover from the tax cuts can help to invest in training of the workers to upgrade their skills and restructure the educational system to respond to the rapid global economic system changes. The fiscal and monetary policies can also help individuals to finance their regular trainings if their disposable personal income increases. I find that the rapid development of technology affects negatively employment because the system of education nowadays is not yet prepared to face the global changes in economic system. It is important to adapt the educational system to the global challenges so that new comers in the business from schools do not have to starve due to lack of skills required by firms to employ

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