Rapid advances in artificial intelligence and automation are reshaping labour markets across economies, generating significant productivity gains while simultaneously intensifying the risk of technological unemployment. This study examines the economics of reskilling by analysing how strategic human resource management (HRM) interventions can mitigate different stages of unemployment induced by technological change. Grounded in labour economics and contemporary HRM theory, the research conceptualizes technological unemployment as a multi-stage phenomenon, encompassing skill displacement, transitional unemployment, structural mismatch, and long-term exclusion from the labour market. The study develops an integrated analytical framework that positions reskilling not merely as a cost-intensive HR activity but as a productive economic investment capable of enhancing employability, wage resilience, and organizational adaptability. It evaluates HRM strategies such as continuous learning systems, AI-assisted skill mapping, internal labour market mobility, and public–private reskilling partnerships, assessing their economic outcomes at individual, organizational, and macroeconomic levels. Particular attention is given to emerging economies, where rapid digital adoption often outpaces workforce preparedness, thereby amplifying unemployment risks. Methodologically, the research adopts a systematic and analytical approach, synthesizing empirical evidence from labour market studies, organizational HR practices, and policy reports to identify patterns linking reskilling intensity with employment stability and productivity growth. The findings highlight that timely and targeted reskilling interventions significantly reduce the duration and severity of technological unemployment across its stages, while delayed or fragmented HR responses exacerbate inequality and labour market polarization. The researchers in their research contributes to the literature by reframing reskilling as a strategic economic lever within HRM rather than a reactive response to job loss.