How to Say "shrinkage" in Spanish
The Spanish word for “shrinkage” is “contracción” — B2 level.
English → SpanishB2
nounB2formal
reduction in size

Examples
La economía sufrió una contracción del dos por ciento.
The economy suffered a two percent contraction.
El metal experimenta una contracción con el frío.
Metal undergoes a contraction with the cold.
La contracción del mercado laboral preocupa a los expertos.
The contraction of the labor market worries the experts.
Abstract Nouns
As an abstract noun (something you can't touch), it is almost always used with the article 'la'.
Related Translations
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