Growing Pains In The Service Sector

Growing pains in the service sector

The service industry in the United States is critical to the economy and employment opportunities. The service industry provides 80 percent of all U.S. jobs and consumer spending on services accounts for 39 percent of the entire economy. However, there has been a decline in the service sector, including the amount of people employed and profit, throughout the past three decades.

There are many explanations for the decline in the amount of money being funneled through service industries. Most notably

is the increase of technology. In earlier decades a family would higher people to take care of domestic responsibilities. With the widespread uses of vacuum cleaners and washers and driers, the need for others to assist with domestic responsibilities has dropped drastically.

There has also been a decline in the amount of people either in or pursuing employment in the service industry. A reason for this could include an increase in the number of jobs in health services and education as a result of the increase in state expenditures in these areas during the 50’s and 60’s. Large industrial firms have also began contracting out cleaning or design work which as formerly handled within the company.

The growth in health and educational employment, however, are most likely not going to see an increase in employment opportunities. Unfortunately, growth in the service sector is also not likely to continue due to the small proportion of the workforce and the amount of sub-contracting which has already been done. The service industry at the moment does not seem to offer a very promising basis for the expansion of employment.

Due to the slump in domestic sales, export orders, and employment opportunities the potential for the service industry to recover economically seems less and less possible. This should be of concern to the United States because of the critical role the service industry plays in sustaining our economy. The effect of the slowing retail and manufacturing sector has been trickling down to the service industry. This is also of concern because some see this as a problem that may be spreading beyond repair.

Another problem the service sector needs to address is the disinterest of many young people in employment with the service sector. Young people constructed a large proportion the overall population of the service sector. This new generation of teenagers are showing less of an interest in areas of the service sectors that in earlier decades were dominated by teenagers.