How Does Technology Reduce Unemployment?

When it comes to technology, most will agree that its advancements play a huge role in unemployment. Where this agreement usually ends, however, is with the question of its long-term effects. While some are convinced that technology will soon create jobs, it is more likely that available jobs will continue to decrease.

Peter Diamandis says that there is controversy over whether or not technological unemployment actually hurts workers or the economy in the long run. Although the rise of technology has caused a major decrease in available mid-wage jobs, he believes that this is temporary and that within several decades the economy will be stronger than ever. In the article, he provides four possible results of technological unemployment and a few could be seen as beneficial. Although he mentions society possibly rebelling over major job loss, he also identifies a net positive increase in jobs as a possible outcome. The other outcomes include society adapting to job loss by working …show more content…
Wladawsky-Berger believes that computers are most capable of handling mid-skill, mid-wage jobs. The jobs require repetitive tasks to be done such as in manufacturing and other production-like jobs. These jobs are being taken over by machinery and have produced low wage jobs for operating them. As a result of computerization, more unwanted low wage jobs have been created, increasing the unemployment rate. High-skill, high-wage jobs have been left untouched by computerization because the tasks and deep analysis they require cannot be done by machines. Even though high-wage jobs are most desired, they require many years of schooling causing fewer people to have them. Wladawsky-Berger concludes the article with an analysis of the impact of artificial intelligence. He believes that it can complement the jobs that it cannot