Services industry or sector involves distribution, transport and sale of goods from producer to consumer. The service sector also includes the supply of a service like entertainment and cleaning services. Principal characteristic of a service industry is people to people interaction. Goods, however, may also be transformed when providing a service. For example, a restaurant cooks the food before serving it to customers.
In the U.S. economy, jobs can be categorized into sectors, which can then be split into divisions, each of which include various industries. There are two major sectors in the U.S. economy, as identified by the U.S. Standard Industry Classification System: the goods-producing sector and the service-producing sector. The goods-producing sector includes agriculture, forestry, and fishing; mining; construction; and manufacturing. The service-producing sector includes the divisions of (1) transportation, communications, and utilities; (2)wholesale trade; (3) retail trade; (4) finance, insurance, and real estate; (5) public administration; and (6) services. This sixth group—the services division—includes a number of industries
Economic progression
Country economies tend to progress from agriculture to industry to services. The service industry is seen to be more opaque to international competition compared to manufacturing. Nations which undergoes faster economic development have greater labor costs than those countries lagging behind in the economic development road. This resultant shrinking of manufacturing in more developed economies force those nations to adopt services as a leading employment source.
Types
Service industry or service sector includes portions of a country's economy like tourism, banking, social services, social services and education. Persons working in the service sector collaborate to do work effectively. Knowledge is utilized to increase workplace performance and also for corporate sustenance. End product of service industry is advice (consultancy services), experiences (movies), attention (hospitality industry like hotels and restaurants), and discussion (interactive TV or radio programs).
The growth of the service industry in the past two decades has prompted a number of questions about this sector of the American economy and the reasons for this trend. Some questions about the growth of the service industry include: What is the service industry and what types of businesses operate in it? What are the trends in growth for the service industry and the reasons underlying its growth? How is the service sector affected by recessions and economic down-swings? What are the human resources issues associated with the service industry? How is offshoring affecting American service jobs? What is expected in the future for the service industry?
