Final answer:
Deindustrialization refers to the reduction of industrial activity leading to the loss of manufacturing jobs and the growth of lower-paying service jobs, impacting the middle class and widening income inequality.
Step-by-step explanation:
The term that refers to the loss of high-paying manufacturing jobs, resulting in the decline of the middle class who end up in low-paying service jobs, is deindustrialization. This process involves the reduction of industrial activity in a region or nation, often due to capital flight where companies move their production to places where costs are lower. Deindustrialization has led to a shift from manufacturing to service industries, impacting job growth patterns and contributing to the transformation of the labor market and the economic landscape.
During deindustrialization, as the high-paying manufacturing jobs are outsourced or relocated to countries with lower production costs, workers in developed countries are often left with fewer job options, particularly in the service sector, which may offer lower wages and less job security.
This transition not only influences individual livelihoods but also has broader social and economic repercussions, including the weakening of middle-class stability and exacerbation of income inequality. As the middle class shrinks, the gap between the wealthy and the poor widens, engendering a societal shift with significant long-term effects.