31, July 2025

Elastic Demand, Automated Supply: Emerging Employment Challenges

VOLUME-11; ISSUE-7; JULY-2025

Author(s): Dr. Deepa N R

Authors Affiliations:

Assistant Professor in Department of Economics

The Gandhigram Rural Institute (DTBU), Gandhigram, Dindigul district

DOIs:10.2015/IJIRMF/202507035     |     Paper ID: IJIRMF202507035


Abstract
Keywords
Cite this Article/Paper as
References

The integration of automation into production processes has significantly transformed labour markets across the globe. This article explores the intricate relationship between employment, automation, and the elasticity of demand for goods and services. As industries adopt labour-saving technologies to improve efficiency and reduce costs, there are significant implications for both skilled and unskilled labour. However, the effect of automation on employment depends heavily on the elasticity of demand for the final goods produced. Using a mixed-method approach, including secondary data analysis and econometric modelling, this study investigates how demand elasticity moderates the employment impact of automation across various industries. The findings suggest that industries with elastic demand may experience net employment gains, whereas those with inelastic demand often show workforce displacement. The study contributes to labour economics by highlighting nuanced interdependencies among technology, consumer behaviour, and job dynamics.

Employment, Automation, Demand Elasticity, Labour Market, Technological Unemployment, Industrial Restructuring, Productivity, Skill Polarization

Dr. Deepa N R (2025); Elastic Demand, Automated Supply: Emerging Employment Challenges, International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-11, Issue-7, Pp. 238-241.         Available on –   https://www.ijirmf.com/

  1. Bessen, J. (2019). AI and Jobs: The Role of Demand. NBER Working Paper No. 24235.
  2. Acemoglu, D., & Restrepo, P. (2018). Artificial Intelligence, Automation and Work. NBER Working Paper No. 24196.
  3. Chiacchio, F., Petropoulos, G., & Pichler, D. (2018). The Impact of Industrial Robots on EU Employment and Wages. Bruegel Working Paper 2018/02.
  4. Graetz, G., & Michaels, G. (2018). Robots at Work. Review of Economics and Statistics, 100(5), 753–768.
  5. Frey, C. B., & Osborne, M. A. (2017). The Future of Employment: How Susceptible Are Jobs to Computerisation? Technological Forecasting and Social Change, 114, 254–280.
  6. Arntz, M., Gregory, T., & Zierahn, U. (2016). The Risk of Automation for Jobs in OECD Countries. OECD Social, Employment and Migration Working Papers, No. 189.
  7. Autor, D. H. (2015). Why Are There Still So Many Jobs? The History and Future of Workplace Automation. Journal of Economic Perspectives, 29(3), 3-30.
  8. Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age. W. W. Norton & Company.
  9. Goos, M., Manning, A., & Salomons, A. (2009). Job Polarization in Europe. American Economic Review, 99(2), 58-63.
  10. Katz, L. F., & Murphy, K. M. (1992). Changes in Relative Wages, 1963–1987: Supply and Demand Factors. Quarterly Journal of Economics, 107(1), 35–78.
Post Views: 53

Download Full Paper

Download PDF No. of Downloads:11 | No. of Views: 58