That's right. We have slipped in terms of income per capita from fifth in the world in 1990 to about tenth or eleventh now, and that is purely due to a slower growth rate in output per worker, or productivity, which is the way most economists measure it.
It's actually the other way around. Productivity in manufacturing has actually kept pace with, or been even stronger than, productivity growth in services.
Some economists would say the job loss is actually a good thing, because by investing more heavily in technology and capital, by being forced to adapt their business models, firms are actually really keeping themselves very sharp.