Final answer:
The shift from manufacturing to service industries, influenced by globalization, can increase the supply of service workers and potentially lead to lower wages. If demand for service workers does not increase proportionately, wages could fall, but employment may rise if demand also grows.
Step-by-step explanation:
The changes in the manufacturing labor market and its effect on the market for service workers, which is not unionized, can be complex. As manufacturing jobs have declined due to globalization and the shift to service industries, the supply of labor in the service sector may increase as displaced manufacturing workers seek new employment. This can lead to a change in wages and employment levels in the service sector.
If the supply of service workers increases due to the influx of former manufacturing workers, we might expect the wage of service workers to fall, as the increased supply could outpace demand. However, if the demand for service workers grows concurrently—perhaps due to the expansion of the service sector—the employment in the service sector may increase. Without a corresponding increase in demand, though, the supply of service workers will remain unchanged, and the wages could potentially decrease.