Brad DeLong says Long-Term Unemployment is turning into Structural Unemployment
DeLong is echoing a post by Mark Thoma and says:
It’s very scary: long-term unemployment has a way of turning into structural unemployment…
Yes it is scary. My new book, The Lights in the Tunnel, is all about how advancing automation technology is going to lead to structural unemployment. I’m concerned that structural unemployment is going to get a lot worse. Economists are saying it will take years for the job market to recover—and during that time, technology will continue to advance. If consumer demand remains depressed (which seems likely), there’s a good chance that technology investment will flow disproportionately into labor-saving technologies such as automation software, robotics, expert systems, etc. That, of course, will result in even more unemployment.