Industrial structural change and manufacturing employment

Ever since the industrial revolution, manufacturing has been the “engine of growth” for output and employment, sparked by major technological change and mechanization and leading to unprecedented and sustained long-term economic growth and rising incomes. The higher incomes led to an increase in demand for manufactured products and a relative decline in spending on agricultural goods. Productivity gains raised demand further as prices of manufactures declined even further relative to other goods and services. Accompanying these changes were major labour force and population shifts from agriculture and rural areas, initially into manufacturing and to urban areas, and later into services. This selfreinforcing industrial development process lasted for decades, if not centuries, as a result of which what have become today’s developed economies generated hundreds of millions of jobs in industry.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure