, a firm where Frederick Taylor's consultancy was applied to practice, about 1905 Taylorism led to
productivity increases, meaning fewer workers or working hours were needed to produce the same amount of goods. In the short term, productivity increases like those achieved by Taylor's efficiency techniques can cause considerable disruption.
Labor relations often become contentious over whether the financial benefits will accrue to owners in the form of increased profits, or workers in the form of increased wages. As a result of decomposition and documentation of manufacturing processes, companies employing Taylor's methods might be able to hire lower-skill workers, enlarging the pool of workers and thus lowering wages and
job security. In the long term, most economists consider productivity increases as a benefit to the economy overall, and necessary to improve the
standard of living for consumers in general. By the time Taylor was doing his work, improvements in agricultural productivity had freed up a large portion of the workforce for the manufacturing sector, allowing those workers in turn to buy new types of consumer goods instead of working as
subsistence farmers. In later years, increased manufacturing efficiency would free up large sections of the workforce for the
service sector. If captured as profits or wages, the money generated by more-productive companies would be spent on new goods and services; if free market competition forces prices down close to the cost of production, consumers effectively capture the benefits and have more money to spend on new goods and services. Either way, new companies and industries spring up to profit from increased demand, and due to freed-up labor are able to hire workers. But the long-term benefits are no guarantee that individual displaced workers will be able to get new jobs that paid them as well or better as their old jobs, as this may require access to education or job training, or moving to different part of the country where new industries are growing. Inability to obtain new employment due to mismatches like these is known as
structural unemployment, and economists debate to what extent this is happening in the long term, if at all, as well as the impact on
income inequality for those who do find jobs. Though not foreseen by early proponents of scientific management, detailed decomposition and documentation of an optimal production method also makes
automation of the process easier, especially physical processes that would later use
industrial control systems and
numerical control. Widespread
economic globalization also creates opportunity for work to be
outsourced to lower-wage areas, with
knowledge transfer made easier if an optimal method is already clearly documented. Especially when wages or wage differentials are high, automation and
offshoring can result in significant productivity gains and similar questions of who benefits and whether or not
technological unemployment is persistent. Because automation is often best suited to tasks that are repetitive and boring, and can also be used for tasks that are
dirty, dangerous, and demeaning, proponents believe that in the long run it will free up human workers for more creative, safer, and more enjoyable work. == Taylorism and unions ==