In economics, deskilling is the process by which skilled labor within an industry or economy is eliminated by the introduction of technologies operated by semi- or unskilled workers. This results in cost savings due to lower investment in human capital, and reduces barriers to entry, weakening the bargaining power of the human capital. Deskilling is the decline in working positions through the machinery introduced to separate workers from the production process.

Deskilling can also refer to individual workers specifically. The term refers to a person becoming less proficient over time. Examples of how this can occur include changes in one's job definition, moving to a completely different field, chronic underemployment (e.g. working as a cashier instead of an accountant), and being out of the workforce for extended periods of time (e.g. quitting a position in order to focus exclusively on child-rearing). It can also apply to immigrants who held high-skilled jobs in their countries of origin but cannot find equivalent work in their new countries and so are left to perform low-skilled work they are overqualified for. This can often be the result of problems in getting foreign-issued professional qualifications and degrees recognized, or discriminatory hiring practices that favor native-born workers. In addition, relying on technological decision aids and automation has been found to contribute to individual workers' deskilling: in the presence of reliable technological aids, workers (e.g., accountants, doctors, pilots) tend to decrease their cognitive engagement with the work task.

Deskilling

It is criticized for decreasing quality, demeaning labor (rendering work mechanical, rather than thoughtful and making workers automatons rather than artisans), and undermining community.

Deskilling

History and arguments of classical economic theory

Deskilling as a byproduct of technological advancements, generally driven by production innovation, can first be examined during the first industrial revolution in late 18th century England. On the other hand, skilling is also seen as a direct consequence of technological advancement, whereby workers have the opportunity to adopt new operational knowledge through upskilling.

Deskilling

The stance on deskilling within technological advancement and its impact on the division of labour is politically polarizing. Adam Smith and prominent socialist advocates such as Karl Marx regarded technological development as having a deskilling-bias, with advancements in economies of scale and reduction in required workers as by laws of diminishing returns rapidly increasing investor profit. This liberal view theorizes that deskilling's resultant simplification of worker tasks or replacement of previously skilled workers reduced opportunities, bargaining power and was utilized as a weapon by the bourgeoisie to enforce a classist struggle that shrinks the middle class.

Alternatively, pro-capitalist ideology supported by Charles Babbage argues that technological change embodied by inducement mechanisms support the skill-enhancing opportunities of workers, rather than simplifying workers roles. This neoliberal economic view saw deskilling as an unintentional biproduct, rather than an envisaged motivator.

However, the establishment of classical economic theory dictates that technical change directly affects wealth, consumption, employment, and income distribution. Although innovation is essential for growing economies, the structural byproduct of such advancements are argued by classical economic theory to increase, diminish or shift the demand for skilled and unskilled labourers. In this case, classical political economists view that the 18th century industrial revolution was driven for the purpose of deskilling incumbent workers is not empirically supported. Regardless, the byproduct of such technological advancement promoted the skilling of proportionately fewer workers. Economic historians support that there is no clear deskilling tendency within 18th and 19th century economies but rather a combination of deskilling, skilling and skill-displacement.

19th century statistics support the growth of skilled workers, including high-skilled and low-skilled workers, as reaching above 60% of the English and Welsh population. However, this statistic fails to mention the growth in highly skilled or low-skilled workers, thus providing no evidence to support the claim that deskilling was the prominent outcome.