What is the link? When structural change occurs, resources are shifted towards more efficient industries, increasing aggregate supply and hence economic growth. When economic growth occurs, rising incomes changes the demand for goods and services. Economic growth is not evenly spread with some industries expanding at the cost of others.

Structural Change from the Mining Boom This explores a more in-depth explanation of how economic growth can cause structural change. During the mining boom (between 2010 and 2013), the Australian economy experienced high levels of economic growth which peaked at about 4.3%, fuelled mainly by the commodities sector. While the mining sector flourished, other sectors went in decline. The mining boom saw high cash rates of 4.75%, high exchange rates at $1.10 USD and labour shortages discouraging growth in other sectors such as manufacturing and agriculture. This is evidence of structural change, with income, output and employment in one sector growing at a cost of declining income, output and employment in another sector.