Rise of the service economy

• Definition:

  •Increase in the tertiary sector industry.•Occurred in parallel to deindustrialisation and decentralisation.
• •Increase in tertiary industry also amplifies the demand in other tertiary employment, often in business support roles.

  For example:•Office based employment – administrative services

  •Advertising and media

  •IT support

  •Leisure services

  •Property development
• amplifies employment inequalities: Lower pay

  •Highly paid managerial jobs are relatively few in numbers. (20 employees to one manager is optimum number).

  •Office jobs can be low-skilled, low paid and can often be part-time.
• amplifies employment inequalities: Unemployment

  •The total employment growth in service economy has not compensated for the loss of manufacturing jobs
• amplifies employment inequalities:Gender inequality

  •Many more services jobs than manufacturing jobs are held by women. Due to the gender pay gap, this can mean lower family incomes than previously.
• amplifies employment inequalities: Job insecurity

  •Many jobs which are created are insecure – increasing use of ‘zero-hours’ contracts for employees and growing number of ‘self-employed’ roles which do not offer same benefits and protections.