The evolution of manufacturing employment in Canada

In Canada, the evolution of the I-O structure of the economy, which captures changes in the composition of intermediate inputs for all industries, accounted for 76.3 per cent of the fall in the employment share of manufacturing over the 1976-2008 period. [...] In contrast, Berlingieri (2014) found that changes in the composition of intermediate inputs for all industries accounted for only 25.3 per cent of the fall in manufacturing’s share of total employment in the United States over the 1948-2002 period, well below the result in this report (76.3 per cent), and that most of the effect of changes in the composition of intermediate inputs was related to [...] Related to this last explanation, Berlingieri (2014) found that, in the United States, the evolution of the input-output (I-O) structure, which captures changes in the composition of intermediate inputs in the economy, accounted for 25.3 per cent of the fall in the employment share of manufacturing over the 1948-2002 period. [...] These coefficients show the value of the intermediate inputs from the industry at the beginning of the row that is needed to produce a dollar of gross output in the industry at the top of the column. [...] More specifically, Berlingieri examines whether and to what extent the outsourcing of PBS by the manufacturing sector has contributed to the increase in the relative importance of the service sector and to the decrease in the relative importance of manufacturing in terms of employment.