Luddism 's understanding of the relationship between technological progress and employment has its limitations as it overlooks the long-term, aggregate, and dynamic impacts of technological progress on employment. Empirical data show that, in the long run, technological progress promotes employment growth. However, this requires conditions such as effective coordination across industry chains, fully leveraging the crucial role of fi nal demand, and appropriate market regulations. The study argues that although the Luddite perspective is limited, the employment losses experienced by some micro-level individuals are real. Thus, it is essential to pay attention to the demands of workers at the micro level and implement effective redistribution policies to ensure that the benefi ts of technological progress are shared by all workers. In the era of artifi cial intelligence (AI), the fundamental nature of labor-saving technology remains unchanged, still characterized by its labor-saving features. However, analysis should not merely focus on the superfi cial job displacement effect; instead, it should delve into the structural reshaping of work tasks and skill demands. It is evident that technological progress decomposes and recomposes work tasks, alters the boundaries and allocation of tasks, and triggers profound changes in skill requirements. Consequently, it requires establishing a task- and skill-oriented vocational training system. The employment prospects in the AI era depend on how we shape the direction of technological development, manage the transition process, and distribute the technological dividends fairly. However, technological progress itself does not determine socio-economic outcomes, so the key lies in the institutional choices and policy arrangements surrounding technological development. Therefore, proactive policy design should guide AI technology to become a driving force for economic prosperity and social well-being.