Service Sector

• Service Sector


  Provides services to Agricultural Sector (Primary sector) and Industry Sector (Secondary sector)
• Components of Service Sector

  • Transportation
  • Communication
  • Storage
• Transportation, Storage, and Communication

  • A good system should be in place in order the goods and services to reach people safely, immediately, and properly
• The service sector is considered as the "main driver" of the Philippine economy
• Among all the economic sectors, the service sector has the largest share in national income
• The service sector is the source of labor, skills, and knowledge necessary to accomplish the various economic activities in the Philippines
• The Finance subsector plays an important role in promoting a dynamic economy
• Finance subsector components


  • Insurance firms
  • Loan companies
  • Pawnshops
• BSP listed 38 universal banks, 71 thrift banks, and 617 rural banks
• The Housing and Urban Development Coordinating Council is the government agency that formulates the rules, plans, and programs of the housing sector
• Private Services

  • Educational
  • Medical
  • Entrepreneurial
  • Recreational
  • Hotel
  • Restaurant
• Business Process Outsourcing (BPO)


  Part of private services subsector and the fastest growing industry in both at the local and global levels
• In the Philippines, BPO offers traditional voice and IT services as well as finance, animation engineering, medical transcription, and architectural services
• Domestic Trade


  Pertains to wholesale and retail trade in the country
• An active exchange of goods and services in the country leads to a vibrant economy
• Significance of the Service Sector


  • Source of Livelihood
  • Source of Services
  • Sources of national income and output
• The service sector is the primary source of employment in the Philippines, with 54.1% of the estimated 37.94 million jobs
• Services provided by the Service Sector

  • EDUCATION
  • Transportation
  • Medical services
• 57% of Philippine GDP came from outputs of services
• The 2013 growth rate was: Services 7%, Transport, storage and communication 3.3%, Trade 1.5%, Financial Investments 1.2%, Real estate, renting, business 1.2%, Public advancement 0.4%, Other services 1.3
• Challenges Facing the Services Sector

  • Brain Drain
  • Skills Gap
• Brain drain pertains to the loss of educated and professional workers through the movement of much labor to favorable environment
• The World Bank reported that creativity, leadership, and problem solving skills of Filipino workers should be improved
• Programs and Institutions


  • Philippine Response to Indigenous Peoples and Muslim Education (PRIME)
  • Balik Probinsya
  • Financial Sector Assessment Program (FSAP)
  • Philippines Basic Urban Services Sector Project
  • National Information Technology Plan for the 21st Century (IT21)
• As technology advances, workers will have to compete with other workers, but with machinery and robots
• In South Korea, $100 million were allotted for the building of robots that have the ability to teach English
• As Filipinos we should hone our skills and increase our knowledge of technology