What unemployment is due to changes in information technology?

Answer 1

Information Technology:

The term "information technology" is used in a variety of senses. A wide definition of Information Technology is the study, design, development, application, implementation, support or management of computer-based information systems. It has also been defined as a branch of engineering dealing with the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate data.

Un-Employment:

Unemployment occurs when people are without work and actively seeking work. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.

Causes of Un-Employment:

- Lack of Education

- Skill worked

- Technological How Know

Lack of Education is main factor which increase the un-employment, because when technology takes the hold in an organization the people who are uneducated are expelled from the organization. When the people had no knowledge of Skill Work, they work wrongly then this is also the reason of unemployment. Those people haven't the knowledge of Technological machine how the person continue the working with that organization who need working in the technological form. That is Technological How Know.

These all are the causes of un-employment in the world. There are some theories also present in the world that show that how the organizations create the seasons of un-employment.

Information Technological Un-Employment:

Technological unemployment is unemployment primarily caused by technological change. Given that technological change generally increases productivity, based on the past available evidence it is believed by many leading economists that technological change, although it disrupts the careers of individuals and the health of particular firms, it does not lead to systemic unemployment. However, it should be noted that economists Erik Brynjolfsson and Andrew McAfee of MIT contend that the rate of technological change has become so rapid in the area of information and communication technologies (ICT) that the adverse latent effects of an exponential productivity on employment may outpace job growth in an economy increasingly reliant on the development of the tertiary and quaternary economic sectors. That being said, the notion of technological unemployment leading to structural unemployment (and being macro economically injurious) is often called the Luddite fallacy (named after an early historical example, discussed below). Disbursement of labor by lowering working hours and technological advancement leading to a lower cost of living relative to income has been the general direction since the industrial revolution.

Labor displacing technologies can generally be classified under the headings of mechanization, automation, and process improvement. The first two fundamentally involve transferring tasks from humans to machines. The third fundamentally involves the elimination of tasks altogether. The common theme of all three is that a task is removed from a workforce, decreasing employment. In practice, the categories often overlap; for example, a process improvement can include an automating or mechanizing achievement, and the line between mechanization and automation is subjective, as sometimes the former can involve sufficient control to be viewed as part of the latter.

In principle, technological unemployment may be distinguished from unemployment caused merely by the contraction phases of business cycles. In practice, such differentiation is difficult, owing to the multivariate nature of economics. Like unemployment in general, most technological unemployment is temporary, as unemployed workers eventually find new jobs. For several centuries, the main controversy about technological unemployment has been whether it can ever lead to structural unemployment.

Conclusion:

Whenever the way of working of an organizations is changed due to changes occurs in technology based so they update their systems and reduced the labour cost, due to this ratio of un-employment is increase but this is for short time because the technology cannot reduced employment but it always change the way of working of the people, information technology create the short time effect of un-employment but all the effect is zero because of creating a new departments, for example:

- IT Department

- Technical Department

- Software Houses

These departments in an organization create more employment because technology always run by a Human it cannot be run automatically. I think that Information Technology did not reason behind the un-employment in business organizations.