Impact of Technology on Macro-Level Employment and the Workforce: What are the Implications for Job Creation and Job Destruction in Ghana?

Abstract

Technology whilst creating jobs has destroyed many jobs. The destructive power of technology has led many workers in developing countries, especially Ghana to fight against its introduction. We investigate the effect of technological change on job creation and destruction in Ghana using longitudinal data from the World Development Indicator covering 1990 to 2018. By running the ARDL model, the summative technology-related job destruction is higher in the short run whilst job creation is higher in the long run. Thus, technology has a compensation effect on job destruction and job creation, due to its labour-saving nature. The short and long-run job destruction is higher with increasing importations, interest rate, and minimum wages, however, economic growth, FDI, and exportation increase job creation. Since technology results in higher job destruction, it is important to equip workforce with the technological knowledge before the introduction of new technology.