Most people in developed countries work in places that provide services, such as shops, offices, restaurants, universities, and hospitals. These are examples of the tertiary, or service, sector of the economy.
Key Issue 1: Where Are Services Distributed?
Learning Outcome 12.1.1: Describe the three types of services.
Services, Settlements, & Geography Most people in developed countries work in such places as shops, offices, restaurants, universities, and hospitals. These are examples of the tertiary, or service, sector of the economy. A service is any activity that fulfills a human want or need and returns money to those who provide it.
Consumer Services The principal purpose of consumer services is to provide services to individual consumers who desire them and can afford to pay for them. Nearly half of all jobs in the United States are in consumer services. Four main types of consumer services are retail, education, health, and leisure.
Business Services The principal purpose of business services is to facilitate the activities of other businesses. One-fourth of all jobs in the United States are in business services. The main types of business services include professional services, financial services, transportation and information services.
Public Services The purpose of public services is to provide security and protection for citizens and businesses. About 8 percent of all U.S. jobs are in the public sector. Excluding educators, one-sixth of public-sector employees work for the federal government, one-fourth for one of the 50 state governments, and three-fifths for one of the tens of thousands of local governments.
Distribution of Services Services account for more than two-thirds of GDP in most developed countries, compared to around one-half in most developing countries. Services cluster in developed countries because more people with the ability to buy services live there. Within developed countries, larger cities offer a larger variety of services than do small towns because more customers live there. Services and settlements are closely linked because settlements exist to provide services. A settlement is a permanent collection of buildings where people reside, work, and obtain services. Settlements occupy a very small percentage of Earth’s surface, well under 1 percent, but most people choose to live in them rather than reside in isolation. Geographers identify proximity to the market as the major factor for location of services. Often, optimal locations for services are based on proximity to the market.
Changes in Job Sectors All growth in employment in the United States has been in the tertiary or service sector, whereas employment in primary and secondary sector activities has declined. Within business services, jobs expanded most rapidly in professional services and more slowly in finance and transportation where improved efficiency has contributed to slower growth. On the consumer services side, the most rapid increase has been in providing health care, education, entertainment, and recreation.
12.1
Economies of scale cost advantages that come producing a large amount of an item