Technological change and

imperfections in labour market

Group 3By: Abdullah, Evelyn, Pheby and William

Machines are smaller and easier to deploy.

Machines produce more. (results in technological unemployment)

The replacing of labour with high technological machines have become much more imminent.

There is an increase in labour unemployment.

Skilled labour for the operation of machinery.

Technological change

Increase unemployment

Increase in wages without increase in productivity

Reduce demand for labour

TRADE UNIONS DEMAND HIGHER WAGE

2 types of unemployment:

Voluntary unemployment Involuntary employment

Countries provide cash and social security. Lower the will to work

REDUCE INCENTIVE TO WORK

Total employment cost are more than wages, it also includes additional cost.

Increase in additional costs would cause fall in demand.

OTHER EMPLOYMENT COSTS and DEMAND FOR LABOUR

People may remain unemployed if they have trouble finding jobs

Workers could benefit the economy with their skills for the right jobs

Government can help people search for jobs.

LACK OF INFORMATION CAUSE UNEMPLOYMENT

Increase in unemployment due to minimum wage laws.

Results in lower demand for labour.

INCREASE IN WAGE LIMITS

Inability of workers to move into other jobs.

Occupational immobility.

Trade unions preventing non-union members from entering jobs.

Sex/race discrimination

Geographical immobility

LABOUR IMMOBILITY