Technology, structural change and manufacturing employment

Roy Rothwell

Omega, 1981, vol. 9, issue 3, 229-245

Abstract: This paper essentially offers a structuralist interpretation of the current unemployment crisis. It argues that while demand is, of course, important, prescriptions couched solely in terms of demand are insufficient. In particular it emphasises the role of technology in the structural changes that have taken place in the relationship between manufacturing output and employment during the post war era. As the 'new' post war industries have matured, the nature of innovation has changed from a focus on product change to one of process rationalisation. During the past decade, in which many of the new industries have moved into a situation of market saturation, manufacturing productivity increase has outstripped demand growth and manufacturing employment has declined.

Date: 1981
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