Technology and Employment in Canada's Steel Industry

Abstract

<p> The major emphasis of this paper is to examine technological changes in the steel industry and how these effect employment. The hypothesis is that, "technological changes have contributed significantly to unemployment in the steel industry." The history of the steel industry in Canada is examined. Trends in production, consumption and employment are studied. All are found to be declining in Canada. A regression analysis shows technology to be a significant factor affecting production efficiency in western countries. Data from Canada, Germany, Japan, the United Kingdom, and the United States for the years 1964 to 1982 are used in the regression. More efficient production means lower employment for a given amount of output. The hypothesis is accepted because employment is proven to be lowered as new technology is implemented.</p>