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Deindustrialisation — the decline of manufacturing industry and its replacement by service-sector employment — is one of the most significant processes shaping UK places in the late 20th and early 21st centuries. This lesson examines the causes and consequences of deindustrialisation, its measurement through deprivation indices, and detailed case studies of Sheffield and Detroit (as an international comparator). Understanding deindustrialisation is essential for analysing how and why places change, and how those changes affect the people who live there.
Key Definition: Deindustrialisation is the reduction in the importance of manufacturing industry in a country's economy, measured by declining employment in manufacturing, falling output, and the closure of factories and industrial sites.
In the UK, manufacturing accounted for 25% of GDP and 7.1 million jobs in 1970. By 2023, manufacturing accounted for approximately 10% of GDP and 2.6 million jobs. This structural shift has had profound consequences for places that were built around industry.
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