This paper examines a multi-sector model of economic growth, focusing on the coexistence of structural change and balanced aggregate growth. The authors derive conditions for sectoral labor reallocation, where labor moves from sectors with higher total factor productivity (TFP) growth rates to sectors with lower TFP growth rates. Along the balanced growth path, the employment share of labor used to produce consumption goods gradually shifts to the sector with the lowest TFP growth rate, eventually converging to this sector alone. The employment shares of intermediate and capital goods remain constant during this process. The model assumes weak restrictions on utility and production functions, consistent with macroeconomic conventions. The results are consistent with empirical evidence on structural change, particularly the technological explanation, which attributes changes to differences in TFP growth rates. The paper also discusses extensions to the baseline model, including the introduction of intermediate goods and multiple capital goods, and provides proofs for key propositions.This paper examines a multi-sector model of economic growth, focusing on the coexistence of structural change and balanced aggregate growth. The authors derive conditions for sectoral labor reallocation, where labor moves from sectors with higher total factor productivity (TFP) growth rates to sectors with lower TFP growth rates. Along the balanced growth path, the employment share of labor used to produce consumption goods gradually shifts to the sector with the lowest TFP growth rate, eventually converging to this sector alone. The employment shares of intermediate and capital goods remain constant during this process. The model assumes weak restrictions on utility and production functions, consistent with macroeconomic conventions. The results are consistent with empirical evidence on structural change, particularly the technological explanation, which attributes changes to differences in TFP growth rates. The paper also discusses extensions to the baseline model, including the introduction of intermediate goods and multiple capital goods, and provides proofs for key propositions.