ABSTRACT
This chapter examines the patterns of labour utilisation for industries at different technological levels. While the primary focus is on internal labour, it is proposed to include the utilisation of external labour as a secondary line of investigation. The chapter explores what extent and in which way technology determines the utilisation of labour. Employment practices are influenced by competition, size of firm, labour legislation, trade unions and it is possible to assess the relative importance of technology. Technology is a major factor in explaining the utilisation of labour and there is no mechanical relationship between the two. A new technology in advanced countries often enables the employers to have recourse to cheaper workers i.e. workers who earn wages which are lower than those paid to workers employed on the old machinery or equipment. Many new technologies introduced in the advanced countries clearly have a de-skilling effect in the sense that the previous technology required greater skills from the worker.
