Cause And Effects Of Technological Unemployment

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In this day and age it is quite obvious that, taking into account the rapid development of technology, the processes of production of various goods are going to change dramatically, and as a consequence the labour market will not remain the same. In the nearest future such changes may to possibly lead to a problem called „technological unemployment“. The term ‘Technological unemployment’ was first introduced in 1930s by the famous economist John Maynard Keynes and describes unemployment that occurred due to technological advancement and new methods of production in industry or business. Such technological advancement usually includes automation which means the use or introduction of automatic equipment in a manufacturing or other process or facility. In this essay I will try to examine main causes and effects of technological unemployment, focusing mainly on information concerning developed countries with high level of technological innovation.

We can confidently state that one of the main reasons of changes in labour market is improving production processes by using advanced technology. The underlying cause for this issue is probably the need to improve production processes in order to make increase the output and to minimize the production costs. As a consequence, technological innovations became one of the main aspects in producing more with less time, costs, and labour.
Technological progress, on its turn, resulted in advanced machinery in manufacturing. These
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