Shift in US Economy

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USA Economy History

The manufacturing industry came to prominence in the United States during the 19th century. American economy has undergone a fundamental shift since the conclusion of World War II. -service industries accounted for 10% of nonfarm employment, compared with 38% for manufacturing. -In 1970, there were 48.8 million service-providing workers, and 22.2 million people in the goods-producing sector,(ratio of 2.2 :1) -In 2005, according to preliminary statistics compiled by the Bureau of Labor Statistics and published in Establishment Data Historical Employment (2005), workers who provided services (111.5 million) outnumbered workers who produced goods (22.1 million) by a ratio of five to one. Free Powerpoint Templates Page 2

Manufacturing to service sector

Since 1980 there has been a downward trend in manufacturing employment while employment in service-producing industries continued to grow at an even faster pace. As a result, the percentage of all nonfarm workers in manufacturing declined from 24 percent in March 1973 to 10 percent in March 2007, and workers in the service sectors went from 70 percent to 83 percent.

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Reason for sustaining of Service Sectors

Female participation in economic activities has influenced the service sector's share in employment. US citizen prefer white color job. Purchasing power of customer is very high but the cost of production is Very high.

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Researchers View
According to researcher Joseph R. Meisenheimer II : "The Services Industry in the 'Good' Versus 'Bad' Jobs Debate.

The reason of debate is because average wages are higher in manufacturing than in services, some observers view the shift in employment from goods-producing to service-providing as a change from "good" to "bad" jobs.

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Researchers View
Meisenheimer, however, found that many service industries equal or exceed manufacturing and other industries on measures of job quality.

The quality of service-industry jobs is especially diverse, encompassing many of the "best" jobs in the economy along with a substantial share of the "worst." Thus, employment shifts away from manufacturing and toward services that can, but do not necessarily, signal deterioration in overall economy of US.

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