Final answer:
Automation refers to the replacement of human labor with programmed control and is a driving force behind changes in the job market. It encompasses the strategic choice of technology to increase efficiency and reduce costs, often resulting in the reduction of needed human labor.
Step-by-step explanation:
When we talk about replacing human operation and control of machinery and equipment with some form of programmed control, we are referring to automation. This is a significant factor causing changes in the job market, as computers and other technologies can perform many tasks more efficiently and at a lower cost than human labor. A common example of this in everyday life is the use of self-scan checkout aisles in supermarkets, where one employee can now oversee multiple aisles that previously would have required one cashier each. In the broader perspective, automation encompasses the use of technology to substitute traditional methods of input combination to create outputs, aiming for lower cost production and higher profit margins. This substitution often comes at the expense of labor, with firms having a variety of options ranging from human-powered solutions to fully automated systems.
Each firm faces choices in its production technology, balancing the use of labor and physical capital. Jobs once held by humans, such as answering phones, filing, and transporting materials can now be done by voicemail systems, computerized recordkeeping, and robots. These transitions highlight a choice between smaller machines requiring more workers, or larger machines operated by fewer workers, all contributing to the advancement of mechanization.