Technology and Employment Growth Syndrome in Iran: The Case of Manufacturing Industry

Document Type : Original Article


1 Ph.D Candidate in Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran

2 Associate Professor of Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran

3 Assistant Professor of Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran


The average economic growth rate of Iran over the past four decades has been a positive number; Meanwhile, the unemployment rate has risen on the average over the past four decades. Therefore, the main issue in this study is that the employment rate has not been increased in proportion to the economic growth rate. For this purpose, first, using the pathological method of employment growth, the challenge of growth associated with employment has been investigated. One of the most important constraints on job growth is the technology factor. Then, using quantitative regression quantitative method and data related to technology index, employment growth elasticity index and sustainability index in technology improvement, the effect of technology on employment growth elasticity during the period 1990:1-2020:4, has been investigated. The results show that in the primary deciles, the impact of technology and sustainability in technology improvement on employment elasticity is higher than in the final deciles. Also, in recent years, with the improvement of technology, production has increased, and employment has decreased. Therefore, in addition to improving technology, the issue of adapting the labor force through training and skills enhancement channels with technology changes should be considered and emphasized.


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