Final answer:
The statement that automation advancements are likely to reduce the workforce and increase unemployment is true. Advancements in automation and artificial intelligence have enabled machines to perform tasks once done by humans, leading to job reductions in several industries.
Step-by-step explanation:
Automation advancements are likely to result in a reduction in the workforce and higher unemployment: True or False? The correct answer is A) True. The progression of automation and artificial intelligence is poised to disrupt the labor market significantly. For example, advancements in technology have enabled computers to perform tasks such as bookkeeping, clerical work, and repetitive tasks on production assembly lines more efficiently than humans. This has led to scenarios where fewer employees are needed to manage operations, such as a single cashier overseeing multiple self-scan checkout aisles in a supermarket, where previously one cashier would be needed per aisle.
While some argue that new technology could lead to an increase in jobs in certain sectors, historically, many industries have seen a net loss in jobs due to automation. These concerns are compounded by the globalization trend where outsourcing to less expensive labor markets also affects job availability in developed countries. To mitigate these negative impacts, there's an emerging consensus on the need for regulations and policies to aid a smooth transition for workers displaced by automation advancements.
The impact of automation is multifaceted and its effects can be felt across various aspects of the economy, including the creation of social stratifications based on individual achievement and contributing to economic polarization. Additionally, the change in labor market dynamics due to automation may necessitate the implementation of welfare and social programs to support those affected by poverty as a result of job losses.