Impacts of Digital Technology to Employment

Impacts of Digital Technology to Employment

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Digital Technology Contribution to Employment

The world is evolving, technology has become a solution in improving accuracy, efficiency, and quality. Almost everything has been automated. In the digital technology, the internet is one sector that has been able to create more jobs than one can imagine (In Olleros & In Zhegu, 2016). People have been able to open company in websites and conduct businesses leading to job creation which was otherwise too expensive to do before technology came in.

On the other hand, technology has enabled the massive production of products which has created more opportunities for suppliers and salesmen across the globe. There has also been a rise in technology teaching experts and assistants as a new job platform that was never taken seriously (Cecere et al., 2014). Digital technology has also made the world a global village, an aspect that has opened more of opportunities for many people as the global market becomes integrated and ready for the ones who can solve an existing problem or present new ideas.

Contribution of Digital Technology to Unemployment

As many people continue to embrace digital technology, an equal number is losing their jobs because of automation. Industrial robotics are replacing human manual labor, and they work faster, better and make more products per hour than a dozen of people combined. Apparently, a machine controlled by one person can do a job that was done by one hundred employees. This means that digital technology is destroying more jobs than it is making.

In the early 20th century there used to be the great migration of people from rural areas to urban centers to work in factories and industries. However, the 21st century has been marred by the rise of digital technology, which has replaced human labor with automated machines that are digitally controlled making people lose their jobs. Even though it boosts productivity, technology leads to the employment of only a dozen people, who must be conversant with it, leaving the rest jobless.

Organization’s Technological Advancements

A firm like Uber is a representation of digitalized cab industry. It has employed IT to connect with customers and coordinate routes effectively. With its subsidized transport costs for customers, it has created more jobs, while at the same time fetching healthy competition. Uber had to replace it manual way of working with an integrated IT GPRS system that helps in its navigation (In Olleros & In Zhegu, 2016). Secondly, the News Corp Company went a digital transformation from a global publishing assets company to real estate, online market solutions, and digital advertisement technology leading to employment over 25,000 employees (Petersen, 2017).

Amazon Business was a simple digital customer company, but after its digitalization, it changed to the B2B world in 2015, which is performing much better. In 2015, McDonald’s went digital and transformed from a simple consumer behavior company to a digitalized company that made massive adverts on the internet and Bowl football championships, making it expand its horizons (Rotman, 2016).

In conclusion, digital transformation has made companies and people reach more customers, create healthy competition and give competitive advantages to others, and enable storing of data and its relay. Moreover, it has led to innovative technology that has created value for producers via the use of machinery that can mitigate production costs. However, it has also led to massive loss of employment by people who were replaced by automated machines. In the end, irrespective of the fact that digital technology has made everything faster, easier and efficient, it has cost the average man his job.


In Olleros, F. X., & In Zhegu, M. (2016). Research handbook on digital transformations. Cheltenham, Gloucestershire: Edward Elgar Publishing.

Cecere, G., Baudry, M., & Université Paris Ouest Nanterre La Défense. (2014). Digital economics and economics of green ICT.

Petersen, R. (2017, 4). 11 inspiring case studies of digital transformation – Biznology. Retrieved from

Rotman, D. (2016, September 1). How Technology Is Destroying Jobs. Retrieved from

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