Abstract: Automation, emerging as a significant force under the new technological paradigm, possesses a transformative effect on the direction of global economics. This powerful tool holds the potential to fuel growth; however, it also bears the prospect of negatively influencing employment rates. Therefore, it is essential, both from a theoretical and practical perspective, to delve into the study of automation's impact on employment in an aging context. To gain a comprehensive understanding of this phenomenon, we have conducted an extensive empirical analysis. Our research incorporates cross-country panel data from a diverse range of 65 countries and regions over the span of two decades, from 1999 to 2019. The results gleaned from this analysis reveal that automation considerably contributes to a decline in employment rates. Subsequently, we examined the automation's influence on employment, considering the moderating role of demographic changes, and further explored the specific mechanisms through which automation affects employment rates. The conclusions drawn from our study reveal that automation exerts a negative impact on employment rates, and that this influence is indeed moderated by demographic shifts. Interestingly, the negative effect of automation on employment rates tends to be eased in nations with high levels of aging, attributing to a reduction in labor market competition. This suggests that the impact of automation is not uniformly negative but can be mitigated under certain demographic conditions. Another notable discovery from our study pertains to the displacement effect of automation. It is evident that one of the significant ways automation adversely impacts employment rates is by displishing manufacturing workers. This displacement effect is especially profound among male workers, who are more likely to be engaged in manufacturing jobs. Turning our focus towards China, we have observed that large-scale automation could serve as a viable solution to address labor shortages amidst the aging process. This is while maintaining a stable employment rate. Consequently, automation may emerge as one of the practical means to tackle the current issue of rapid aging. Therefore, understanding the dynamics of automation and its relationship with employment is critical, not only for its potential to drive growth but also for its capacity to reshape the employment landscape in an aging world. In conclusion, our study deepens the understanding of the intricate relationship between automation and employment and helps policymakers navigate the challenges and opportunities brought about by technological advancements.