How information technologies increases unemployment?

Answer 1

There are a couple of arguments in regards to Information Technology and unemployment.

People who believe that Information Technology has had a negative impact on employment state that machines are replacing jobs that have been originally meant for humans. These newly unemployment people will have to be trained in a new skill.

To look at the other argument we will look at the Production Possibilities Model. The model does shift rightward due to Information Technology which means society is more productive and greater productivity equals lower unemployment. For example, raw materials can be found and mapped easier.

Answer 2

Information technologies can increase unemployment by automating tasks that were previously done by humans, leading to job displacements. Additionally, globalization facilitated by information technologies can result in outsourcing and offshoring of jobs to countries with lower labor costs. Lastly, technological advancements may require higher skill levels, leaving some workers without the necessary qualifications for new job opportunities.