Yes, of course, there is a long-term shift away from manufacturing. As a result, you can, actually, breathe in most US cities now - you've sent all the smog away to Beijing. Why is it bad?
We manufacture more in the US than ever before and more than any other country (including the PRC). Mainland China is dirty because they don't have proper environmental controls (despite signing Kyoto) and neither the govt nor the people care all that much.
..and yes, we need to get used to higher unemployment numbers. They will continue creeping higher and higher as we become more and more efficient. This is (overall) a good thing.