The policy challenge posed by new labour-saving technology is not mass unemployment but how to help workers to make the transition from industries, occupations and regions where automation has destroyed jobs to those where jobs have been created. That is the central conclusion of new research by James Bessen. His study notes that while many people associate automation with a large-scale loss of jobs, as in many of today’s manufacturing industries, in the early years of the cotton textile, primary steel and automotive industries, employment grew strongly along with automation for many decades (see Figure 1 ). The key […]
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