SUNConferences, Southern African Institute of Industrial Engineering 2013

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The Effect Of Technology On The Economy And Employment
John Meyer, Tinus Pretorius

Last modified: 2013-06-25

Abstract


Technological progression and scientific understanding are a key part of modern society and the economy. As our understanding and ability to automate and streamline processes through the implementation of new systems and components improves; our dependence on manual labour decreases. The goal of a business is to create more profit now as well as in the future. This study covers the effect that optimizations and improvements in processes and technology have on business by creating more productive employees and subsequently creating less need for large workforces.

The models adapted for this study find that as businesses become more reliant on work completed by technological components, the requirement for higher skilled employee’s increases. This research shows that there is already and will continue to be, a large divide in compensation between individuals of different skill levels.  Technology has made countries more competitive globally, allowing benefits to flow between nations.  This has also resulted in the world economy growing, and poorer nations catching up to their richer counterparts. Technology is not inherently good or bad, the uses to which it is put it can improve the quality of life for all, but understanding of the implications and benefits should be considered.


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