Technological Unemployment

Technological unemployment is a situation when people are without work and seeking work because of innovative production processes and labor-saving organizational solutions. Technical progress, automation, and the mechanization of production processes reduce the need for human work in different sections of professions. Technological unemployment is an element of structural unemployment associated with the restructuring of industry and agriculture, and the reduction of work demand in certain branches. Unemployment may be permanent or temporary, depending on the possibility of retraining, a change of employees’ careers. The size of mismatch and need for new training is greater in the case of radical innovations than in incremental innovations. Radical innovation is a departure from the previously known technology that disrupts the existing business model of a company or ...