Question

In one to two sentences, give an example to explain how a technology investment by a firm could impact its labor force.(2 points)

Answer 1

Investing in automation technology may lead to increased efficiency and productivity, which could result in workforce reduction as fewer employees are needed to perform the same tasks; however, it could also create new roles requiring advanced skills to manage and maintain the technology. This dual impact can transform the labor force by shifting job requirements and necessitating training for current employees.