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What is the meaning of Deindustrialisation
Deindustrialisation or structural decline of many manufacturing industries along with activities like coal mining is associated with UK manufacturing firms either relocating to cheaper labour zones in EMEs or going out of business in face of fierce competition from EMEs. Clearly workers previously employed in UK manufacturing who have lost their jobs as a result of structural decline of industries which used to employ them have suffered a decline in their standard of living. By contrast, many UK households have profited from the shift of manufacturing to EMEs since they have been able to buy cheap imports from emerging markets especially China. Despite relatively low trend growth rate average standard of living in the UK increased between 1997 and 2007 as British economy experienced benefits of generally falling import prices. (Since 2008 standard of living of most UK residents has fallen. Recession and loss of international competitiveness are to blame.)
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