An Investigation into the Effect of Information Technology on the Rate of Unemployment

This paper investigates the effect of Information Technology on the rate of unemployment. According to different references, some people believe IT can increase the level of unemployment because a lot of jobs will be carried out by machines. On the other hand, some other people oppose this idea and believe IT will create new jobs resulting in a decrease in the level of unemployment. This paper reviews the unemployment effects on society and discusses the effect of IT on Unemployment. For this purpose, firstly, correlation between e-readiness scores and unemployment rate of 61 countries is measured. Then, these countries are categorized into different clusters according to their scores. Finally it is concluded that IT reduces unemployment in different countries.