Q5. One of the reasons provided for the shift in employment has been the difference in productivity gains between the manufacturing and service sectors. If productivity rose more in the manufacturing sector than in the service sector, what effect would this have on employment in the manufacturing sector?
Answer - Due to the productivity gains in the manufacturing sector , the employment in the manufacturing sector will increase at more pace as compared to the service sector. This is because as the result of the gains enjoyed by the producer in manufacturing sector , there will be reduction in costs , the price may decrease , demand will increase . Also due to the gains , the manufacturing concern may may pass on some benefits to the employees as well in form of increased payments. This will attract more labor force towards the manufacturing concern
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