In productivity (Gali, 1999). Brynjolfsson, a professor at Sloan

In economics capital is one of produce’s factors and
within it is technology. Technology is affecting our lives in every specter. Since
the industrial revolution we have rising living standards as throughout much of
the world people live longer, lead healthier lives, work less  and have better jobs. It exists a
relationship between technology and unemployment and the question we want to
answer is “How does technology affects unemployment?”. Neoclassical view claims that technology has no effect in long-run because
people find other jobs, albeit possibly after a long period of painful
adjustment. By and large, that prediction has proven to be true, data shows
that productivity and employment have tracked each other. As businesses generate more value from
workers, the country becomes richer which fuels more economic activity and
creates more jobs. But from 2000s they diverge. In 2011 there is a gap, while
productivity has never been higher, the employment wilts. Authors see something
different at nowadays digital and robotic
technology and claim that it is killing jobs faster than creating new ones.

Canova, Lopez, & Michelacci (2012) show that in developed countries positive
technology shocks can cause unemployment to rise because the wave of layoffs
remains high and the job finding rate takes time to recover. Collard & Dellas (2004) came to same conclusions.  For most of G7 countries, positive
technology shocks lead to a decline in hours and tend to generate a negative
movement between employment and productivity (Gali, 1999).
Brynjolfsson, a
professor at Sloan School of Management and Andrew McAfee believe that
technological change is destroying jobs faster than creating them. Brynjolfsson
says technology is behind productivity growth and the weak jobs growth. People are falling behind because technology is growing
faster than our skills and organizations aren’t keeping up (E.Brynjolfsson & A.Mcafee, 2014).

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Another study conducted by the International Labor Organization,
states that in Cambodia, Indonesia, Philippines, Thailand and Vietnam
approximately 56% of the total workforce is at risk of displacement by robots (Chang & Huynh, 2016). But there is still
little research done in the emerging economies because other evidence suggests that in
countries like China and India  technology is creating jobs directly through
the rise of the IT enabled services and other digital jobs and by the ability
of individuals or firms to use digital tools.

According to Frey & A.Osborne (2013) around 47% of total US
employment is in the high risk category, jobs that could be automated perhaps
over the next decade or two. They
say that most workers in transport and logistics, office and administrative
support, and production occupations are in risk. They find that a substantial share of
employment in service occupations, where most US job growth has occurred over
the past decades is highly susceptible to computerization. The study implys that as technology
goes ahead, low-skill workers will reallocate to tasks that are non-susceptible
to computerization and requiring creative and social intelligence skills.

 

But Katz
(2014), a Harvard economist, says no data show a net decrease in jobs in
long-term. People were always able to create new jobs. He doesn’t dismiss the
idea that there is something different about today’s technology that could
affect an even broader range of work. Autor (2015), an economist at MIT also doubts
that technology could account for that. Computers have replaced tasks which
provided middle-class pay. But demand has increased for low-skill jobs as
restaurant workers, janitors that are difficult to automate and higher-paying
jobs requiring problem-solving skills. The result is an extinction of the
middle class. But even if
digital technologies are holding down creation of jobs, history suggests that
it’s temporary as workers adjust their skills and entrepreneurs create
opportunities on new technologies. So we can say tech-progress more changes the
nature of jobs not unemployment rate. Another study, “Lousy and Lovely
Jobs”, was conducted in United Kingdom with data since 1975. It focus on the current trend of labor
market polarization, with growing employment in high-income jobs and low-income
manual occupations. The model shows that 30% of market polarization comes from
technology changes (Goos & Manning,
2007).

 

As
we can see from literature, there isn’t a clear view on the effect of
technology on unemployment as authors are divided in two different groups. This
is a main issue that still has to be paid attention given that it is a complex
problem as unemployment can be affected by many other factors as business
cycle, financial crisis, government politics etc. What we can say for sure is
that technology has been changing our lives and of course the economy and the
structure of jobs.