Final answer:
Technology changes can either increase or decrease labor demand, depending on whether they act as substitutes or complements. For example, word processing technology decreased the demand for typists, resulting in a decrease in labor demand. On the other hand, technology that complements labor, like information technology software, can increase labor demand.
Step-by-step explanation:
Technology changes can act as either substitutes for or complements to labor. When technology acts as a substitute, it replaces the need for the number of workers an employer needs to hire. For example, word processing decreased the number of typists needed in the workplace. This shifted the demand curve for typists left. An increase in the availability of certain technologies may increase the demand for labor.
Technology that acts as a complement to labor will increase the demand for certain types of labor, resulting in a rightward shift of the demand curve. For example, the increased use of word processing and other software has increased the demand for information technology professionals who can resolve software and hardware issues related to a firm's network.
More and better technology will increase demand for skilled workers who know how to use technology to enhance workplace productivity. Those workers who do not adapt to changes in technology will experience a decrease in demand.