Shrinkage (noun)

1. A decrease in size, amount, or value.
2. A reduction in the length of cloth or other material after washing or laundering, due to tension being released in the fibers.

Origin:

Late 17th century (as a verb in the sense "draw in, shrink"): from shrink + -age.

Examples:

1. The shrinkage of the economy was caused by the recession.
2. The shrinkage of the population is a concern for the future.
3. The shrinkage of the company was due to mismanagement.
4. The shrinkage of the fabric was noticeable after washing.
5. The shrinkage of the carpet was a problem in the installation.