TECHNOLOGY AUTOMATION AND

UNEMPLOYMENT: A CHALLENGE TO
SUSTAINABLE DEVELOPMENT
SUMBOL FIAZ
BROAD AREA OF RESEARCH
• Technology automation is described as the replacement of human labor with advanced machines to
perform certain tasks efficiently (Sostero, 2020).
• Technology automation has not only replaced human resources with machines but also reduced
traditional jobs and shrunk the employment market (Acemoglu & Restrepo, 2019; Badiuzzaman &
Rafiquzzaman, 2020).
• Studies reported a significant increase in the unemployment rate in industries due to innovative
technology adoption (Bhuller et al., 2023; Du & Wei, 2022; Kim et al., 2017)
• The research community is more interested in technology adoption due to its significant impact on
sustainable development (Ali et al., 2023; Neves et al., 2022).
• Researchers have not clearly described the impact of automation on employment (Acemoglu &
Restrepo, 2019).
• Studies lack the analysis that could help the government and policymakers promote automation in
the country and mitigate the negative impact of technology automation on employment.
PROBLEM STATEMENT

• Technology Automation, corresponding to SDG 9, is essential for the

industrial development. However, it can also lead to increased unemployment
in several sectors while promoting job opportunities in a few, and hence
potentially create an obstacle in achieving SDG 8 which emphasize
employment protection.
STUDY OBJECTIVES
• The present study aims to explore the factors that will help to promote
technology automation in the industry of Pakistan and prospect solutions to
mitigate unemployment.

RESEARCH QUESTIONS

• What are the derivers and barriers of technology automation in Pakistan?

• How to mitigate the negative impact of technology automation on employment?

THEORETICAL FRAMEWORK
• Acemoglu & Restrepo, (2018) presented a theoretical model describing an
interaction between human resources and machines. The authors argue that “capital
is fixed and technology is exogenous, automation reduces employment and the
labor share, and may even reduce wages, while the creation of new tasks has the
opposite effects”. Acemoglu & Restrepo, (2020) further argued that the acceleration
of artificial intelligence use reduces labor demand, lowers the national income,
generates inequality, and lowers productivity growth. On the contrary, the Nobel
Prize winner in Economics Herb Simon, Boden, (1987) argues that the
technological transformation will create more decent jobs and unemployment will
not be an issue anymore in the long term. Considering the aforementioned
theoretical arguments this study will attempt to explore how the induction if
technology and progress toward automation has impacted the industries of Pakistan.
METHODOLOGY

• Qualitative, Case study approach