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Sample Article Review Paper on Demand and Supply of Labor

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Sample Article Review Paper on Demand and Supply of Labor

Automation is the use of machines to perform tasks that were previously performed by workers. Automation usually affects the semiskilled and unskilled laborers more often than the skilled labor force. This is due to the fact that machines can be designed and implemented that can perform these elementary functions faster, better and in acheaper way than using people. The first notable public uproar against automation was the Luddile movement in the 19th century. In this movement English textile artisan protested against automation of textile production and even sought to destroy some of the machines. However, the National Commission on Technology, Automation andEconomic Progress under the direction of the president conducted research on the issue in 1964. They concluded that advancement in technology affected jobs and not work. In their book The Machine by Erik Brynjolfsson and Andrew Mcfee discussed the effect of automation on employment claiming that computers, robots and other technologies affected greatly the demand for labor.

The government through its policy has a direct impact on demand and supply for labor. It plays a major role in providing training opportunities and the quality of such training therefore has an impact on the quality and magnitude of supply of labor. The government may also discourage automation and thus increase the demand for labor.

Demand for goods and service affects the quantity of production which in turn affects the demand for labor. Level of training also affects the demand for labor as after the second war there has been an increase in demand for specialized labor and a decrease in the demand for unskilled labor. Innovations also affects demand for labor as ovation may lead to creation of new industries or automation which may lead to a decline in the demand for labor.

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