Where did services originate? Ch. 12: Services Where did services originate?

Where Did Services Originate? Service = any activity that fulfills a human want or need and returns money to those who provide it Services are located in settlements Location of services is important for profitability Affluent regions tend to offer more services Local diversity is evident in the provision of services

Origin of Services Personal services probably came 1st (religion, education) Began as permanent settlements came to be Specialization Public services for protection (military, gov’t) Retail services in the form of trade, producer services began as people were needed to facilitate this trade

Intro Majority of workers in MDC’s are in tertiary sector (provision of services) *NA = ¾ Much less in LDC’s (less than 25%) Service sector divided into 3 types 1) Consumer services 2) Business services 3) Public Services

Percentage of GDP from Services, 2005 Figure 12-1

Three Types of Services Consumer Services Principal purpose is to provide services to individual consumers who desire them and can afford to pay for them. Constitutes nearly ½ of all jobs in the U.S. Subdivided into four main types of consumer services: Retail and Wholesale Services Education Services Health and Social Services Leisure and Hospitality

FIGURE 12-3 U.S. CONSUMER SERVICES Most consumer service jobs are in retail and restaurants.

Business Services Principal purpose is to facilitate other businesses. Constitutes ¼ of all jobs in the U.S. Subdivided into three main types of business services: Professional Services (law, engineering) Financial Services (banking, real estate) Transportation Services (trucking, broadcasting)

FIGURE 12-4 U.S. BUSINESS SERVICES Most business service jobs are in professional services.

Public Services Purpose is to provide security and protection for citizens and businesses. Constitutes about 5% of all jobs in the U.S. Workers divided among various levels of government. Federal Government: 1/6 of public sector employees State Government: ¼ of public sector employees Local Government: 3/5 of public sector employees

FIGURE 12-5 U.S. PUBLIC SERVICES Most public service jobs are in local government.

Rising and Falling Service Employment Service sector of the economy has seen nearly all the growth in employment worldwide. Service sector has also been most negatively impacted by the recession. Change in Number of Employees Within business services, jobs expanded most rapidly in professional services e.g. engineering, management, and law. Within consumer services, fastest increase has been in provision of health care.

FIGURE 12-6 CHANGES IN U.S. EMPLOYMENT Jobs have increased in the service sector.