Why the biggest threat to modern employment is not a lack of jobs

Ideas & Philosophy · Published 29 September 2026 · Updated 25 October 2026 Swipe more like this →

In short: Technological change is creating a paradox in the labor market: plenty of work exists, yet many people cannot access it. Economist Daniel Susskind identifies this as frictional technological unemployment, a state where the barriers to entry—skills, geography, and personal identity—prevent workers from filling the roles that technology creates.

In a lecture delivered at Barnard’s Inn Hall on February 24, 2026, Professor Daniel Susskind argues that we are currently facing a specific type of labor crisis. Rather than a total absence of employment, we are seeing a mismatch between available positions and the workforce's ability to occupy them. This phenomenon, which he terms frictional technological unemployment, suggests that the primary challenge is not the disappearance of work, but the friction that keeps people from performing it.

Susskind points to three primary drivers of this friction. First, there is a skills gap, where the requirements of new roles outpace the current capabilities of the labor pool. Second, geographic displacement plays a role, as work is often created in locations far from where the potential workers reside. Finally, there is a deeper, psychological barrier: identity. Sometimes, the nature of the available work simply does not align with how individuals perceive themselves or their professional purpose, making them unwilling or unable to transition into these new roles.

This perspective shifts the focus from the fear of a world without work to the practicalities of navigating a changing economy. Susskind, a Research Professor at King’s College London and author of works such as Growth: A Reckoning (2024) and A World Without Work (2020), has spent his career examining how AI and automation reshape society. By identifying these specific frictions, he suggests that the path forward involves addressing the structural and personal hurdles that keep people from participating in the modern economy, rather than assuming that technology will inevitably render human labor obsolete.

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