Final answer:
As new technology is introduced in manufacturing processes, direct labor is likely to decrease, particularly for low-skill labor, due to automation and a shift towards increased machinery use.
Step-by-step explanation:
As current technology changes manufacturing processes, will direct labor increase or decrease? With the advent of new technologies, we observe a shift in the demand for labor, particularly low-skill labor, which tends to decrease.
Technological advancements often act as a substitute for low-skill labor, resulting in a leftward shift in labor demand (from D₀ to D₁) as these jobs are replaced by machines.
Conversely, there tends to be an increased demand for high-skill labor, which is complemented by technology, shifting demand to the right (from D₀ to D₁). Additionally, when the cost of labor increases, businesses tend to substitute away from labor towards more machinery use.
Given this trend, it is more likely that direct labor will decrease since technology tends to automate tasks that were previously completed by humans, leading to a decrease in low-skill labor demand.
High-skill labor may see an increase in demand as they are required to operate, manage, and improve these technologies. In summary, with the introduction of new manufacturing technologies, the need for direct labor, especially low-skilled labor, is likely to decrease.