Technological unemployment
Technological unemployment arises when changes in technology displace workers and they do not immediately move into other employment. It can be a form of structural unemployment where skills or occupations no longer match demand. Technology can also create jobs, change tasks and increase output, so the effect on total employment is not determined by the number of tasks automated in one business.
Worked example
Automation reduces demand for a particular manual processing role. Affected staff may need retraining for maintenance, analysis or other available work; whether suitable jobs exist requires evidence.
Common mistake
Do not assume each automated task permanently eliminates one job across the whole economy. Distinguish task changes, job displacement and the longer-term net employment effect.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |