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15
Driverless Car
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WORK
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his research on self-
driving cars is based
on the concept of labour market. In the article, it shows how the self-driving cars could bring a huge growth to the economy through the costs savings from fuel, accidents, and productivity gains. However, it would drastically impact the labours in certain industries such as the taxi or limousine industries. Car Expo experts said that: " Autonomous car are inevitable and will cause significant disruptions not only to transportation, but to housing, urban planning, jobs and even health care. As the driverless cars become popular in the future, it is expected that more employees would be laid off, this unemployment is known as structural unemployment. This is because the advances in car industry would require lesser labours needed in a company's workforce and the driverless cars could provide a much more efficient service to the
customers. For example, technological advances
have created structural
unemployment in the taxi industry. Driverless cars
(Capital) have taken over its source of revenue. According to CNBC, there are more than 4.4 million Americans aged 16 and over working as drivers. (Fahey, 2016) These drivers would no longer be needed it the future because their skills are focused on driving the taxi physically. This type of unemployment is caused by the fundamental shift that is caused by technology advances. The
senior workers would be
unemployed because they
don't have the necessary
abilities or technical skills which create a mismatch between them and the jobs.
This decline in the number of jobs creates a higher natural rate of unemployment, given the high rate of technological obsolescence. This article and analysis done relate to the topic of labour market because as the self-driving cars promise economic growth, it also would cause layoff for the unskilled labours as a result of opportunity cost.