Why has US employment in manufacturing and agricultural sectors decreased over the last 150 years?

The decline of employment in manufacturing and agricultural sectors over the last 150 years is primarily linked to the economic growth that has occurred in the service sector. This transformation reflects a broader trend in modern economies as they develop. As societies advance, there is a shift from primary (like agriculture) and secondary (manufacturing) sectors to the tertiary sector, which encompasses services such as healthcare, education, finance, and information technology.

The service sector has expanded due to increased consumer demand for diverse services, and it also benefits from technological advancements that enhance efficiency and productivity, allowing fewer workers to produce the same, or even greater, output. This demand shift leads to job creation in service industries, often at higher wages compared to traditional manufacturing and agricultural roles, further driving workers toward these new job opportunities.

Therefore, while factors such as technological advancements and international outsourcing contribute to the employment landscape, the overarching reason for the decline in manufacturing and agricultural employment is the significant growth and expansion of the service sector in the economy.