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Mass unemployment

As explained in The AI Pocket Book

A large-scale rise in joblessness across an economy, discussed here as the feared macroeconomic effect of automation.

Mass unemployment is a feared economy-wide rise in joblessness caused by automation. New machines can make workers’ skills obsolete, forcing them to seek different jobs, sometimes for lower pay. section 5.11

The key question is whether automation produces prolonged mass unemployment or expands the economy. Machines can produce the same goods with fewer work hours, increasing output and lowering prices. Freed human time can then support innovation and new forms of production. Historical change complicates the fear: about 60% of employment in 2018 was in job titles that did not exist in 1940. section 5.11

From essential goods to new output

An economy that once needs many workers to produce food and clothes can use machines to reduce that labor requirement. The released capacity may support products and services such as entertainment, television series, medical care, or haircuts. section 5.11

How The AI Pocket Book covers it

How deep it goes
Explains displacement through resources, work hours, output, prices, and new employment, without developing a formal economic model.
Examples
Uses food, clothes, entertainment, television series, medical care, haircuts, and historically new job titles as examples.
What you can do after
Evaluate automation’s feared macroeconomic effect using output, labor hours, prices, and changing job categories.
How it connects
Connects automation with GDP, economic growth, productivity, standard of living, job displacement, and innovation.

Related concepts

This explainer was generated by Manning's knowledge graph from the text of The AI Pocket Book. The section links point to the parts of the book it draws on.