Do Technological Improvements in the Manufacturing Sector Raise or Lower Employment?
The authors find that technologys effect on employment varies greatly across manufacturing industries. Some industries exhibit a temporary reduction in employment in response to a permanent increase in TFP, whereas far more industries exhibit an employment increase in response to a permanent TFP shock.
Link
http://www.philadelphiafed.org/files/wps/2005/wp05-5.pdf