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Impact of Technology on Labor Demand
easy

What is a common effect of technological advancements on labor demand, particularly in terms of job displacement?

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Choose the Best Answer

A

Increase in employment opportunities for low-skilled workers

B

Decrease in overall labor force participation

C

Replacement of certain jobs by automation leading to job displacement

D

Equal distribution of jobs across all skill levels

Understanding the Answer

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Answer

Technological advancements often change the way work is done, which can lead to job displacement. This means that some jobs may become less needed or even disappear because machines or software can do those tasks more efficiently. For example, when automated checkout machines were introduced in grocery stores, fewer cashiers were needed. While technology can create new jobs in different areas, it can also make it challenging for workers to find new positions if they lack the skills required for these new roles. Overall, while technology can improve productivity, it can also lead to uncertainty and change in the job market.

Detailed Explanation

Technology can automate tasks, which means machines do jobs that people used to do. Other options are incorrect because Some might think that technology creates more jobs for low-skilled workers; It's a common belief that fewer people will work overall.

Key Concepts

job displacement
Topic

Impact of Technology on Labor Demand

Difficulty

easy level question

Cognitive Level

understand

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