Tertiary Industry
The tertiary industry (or tertiary sector), also known as the service sector, is the sector of an economy that provides services rather than producing goods. It includes activities such as retail and wholesale trade, transport and logistics, finance and insurance, information and communication, professional services, education, health, and public administration.[1]
Definition
The tertiary sector encompasses all economic activities that provide services to consumers, businesses, and government. It is the sector that has grown most rapidly in advanced economies, where it now accounts for the largest share of both output and employment.[1]
Composition
| Category | Examples |
|---|---|
| Distribution | Retail, wholesale, transport, logistics. |
| Producer services | Banking, insurance, law, consulting, IT. |
| Consumer services | Tourism, hospitality, personal services. |
| Social services | Education, health, public administration. |
Economic role
The growth of the tertiary sector reflects rising incomes—since demand for services tends to rise more than proportionally with income—and higher productivity growth in manufacturing, which releases labour for services. Services are a major source of employment in advanced economies and increasingly in developing ones as well. Digital technologies have expanded the range and tradability of services.[1]