Impact of Technological Advances on Job Displacement

Technological advances such as software as a service and cloud computing have enabled firms to quickly adopt new technologies, leading to potential mass displacement of human workers, especially in areas where jobs were concentrated due to cheap labor. While educated and mobile individuals can transition to new jobs or locations, those in vulnerable areas or industries, such as call centers in specific countries, can be severely impacted by job loss. Despite the potential productivity benefits of technological advancements, the lack of effective redistribution mechanisms in society has historically resulted in negative consequences for individuals affected by job displacement.