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Positive And Negative Effects Of Technological Change

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Technological change is an increase in the efficiency of a process (usually done by a machine) which results in more output, but without input having been increased (Winston, n.d). A specific level of technological advancement is necessary for productivity and growth in the economy of a country. The absence of proper technological change retards the economic growth and technological change has impacted the world by creating new products and processes, increasing efficiency and lowering costs, and helping economies evolve. Structural unemployment is the situation when the jobs are available and workers are willing work, but they don’t have the required job skills to qualify for the vacant positions or just simply the mismatch between the jobs available and the skill levels of the unemployed. Technological change may make some skills obsolete or require new ones. For example, the introduction of personal computers since the 1980s, has lowered demand for typists who lacked computer skills (Rittenberg & Tregarthen. 2012, p 216). Technological changes have negative effects on employment. It negatively affects the value the value of workers and automated processes and other technology have become more important to the process of increasing output. Workers are less expensive to replace than machines therefore they have become less valuable as a result of technological change. Government’s economic policies have an influence on technology development and adoption because it helps

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