Structural change in manufacturing

Building on the discussion of the overall economic structural change in the previous chapters, this chapter illustrates structural change within manufacturing in detail. It shows that at relatively low incomes manufacturing value added, productivity and employment tend to grow fast. Then, as countries achieve higher incomes, manufacturing employment slows because its major sources (labour-intensive, low-tech industries) start curtailing employment. This slowdown and eventual decline in employment usually occur while manufacturing value added and productivity keeps increasing.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure