Abstract
Technological progress makes possible a higher standard of living and extends the limits to growth imposed by scarce natural resources. However, many feel threatened by the changes that technological progress will bring. Several attitudes concerning technology's effect on the demand for labor are discussed: 1. Technological progress, on balance, reduces the demand for labor and increases unemployment. 2. Technological progress has little effect on aggregate demand for labor. 3. Technological progress increases the overall demand for labor by stimulating consumption and creating attractive investment opportunities. The historical record shows that productivity gains, in which technology has played a major part, have not displaced large segments of the workforce. According to Bureau of Labor Statistics projections, just under 50% of the jobs created between 1979 and 1990 will be in the services sector, 25% in wholesale and retail trade, and 10% in finance, insurance, and real estate.