Final answer:
The assertion that the service sector has decreased in importance is false. The service sector's growth has significantly outpaced that of traditional manufacturing industries, with over three-fourths of U.S. jobs now found within the service sector.
Step-by-step explanation:
The statement that the service sector of the U.S. economy has decreased in importance as traditional industries have declined is false. On the contrary, the service sector has dramatically increased in significance over the past few decades. Data from various sources, including the U.S. Department of Labor's Bureau of Labor Statistics, consistently show that while manufacturing jobs peaked in the late 1970s and have since declined, the number of service sector jobs has risen substantially during the same period.
This growth has been attributed to several factors, including the shift from a manufacturing-based economy to one that is information and service-oriented, the impact of globalization, and changes in legal environments. The expansion of the service sector has led to economic bifurcation, where high-paying service jobs like computer programming coexist with many low-paying jobs, increasing the income inequality gap. The service sector now accounts for more than three-fourths of all jobs in the United States, signifying its critical role in the U.S. economy.