In-Depth Notes on the Service Economic Sector

Service (Tertiary Economic Sector)

Unit Content Objectives

  • Distribution of Services

    • Where are services, consumer services, and business services distributed?

    • Why do services cluster in settlements?

Key Concepts

  • Services Origin and Distribution

    • Explain the hearths and current distribution of services.

    • Impact of early civilizations on service origin must be considered.

I Can Statements (Key Issue #1- 3 Test Questions)

  1. Impact of Early Civilizations

    • Describe the impact of early civilizations on the origin of services.

  2. Types of Services

    • Describe the three types of services: Consumer, Business, and Public services, and the shifting job numbers.

  3. Occupations Examples

    • Provide examples of occupations within each type of service.

  4. Consumer Demand

    • Identify factors influencing recent demand for consumer services.

  5. Job Comparison

    • Compare and contrast low-order and high-order tertiary jobs.

Service Evolution

  • Originated to provide consumer and public services; businesses followed later.

    1. Consumer Services: Early forms included burial and religious services.

    2. Public Services: Protecting communities came next.

    3. Business Services: Emerged with the need for transportation and extra provisions.

Employment Distribution in the U.S.

  • Approximately 50% of jobs in the U.S. come from consumer services; 25% from business services.

Types of Services

  1. Consumer Services (Consumption Service)

    • Purpose: To provide services to individual consumers who can afford them.

    • Constitutes nearly 50% of all jobs in the U.S.

      • Subtypes include:

      • Retail and Wholesale

      • Education

      • Health and Social Services (largest growth area)

      • Leisure and Hospitality

  2. Business Services (Producer Services)

    • Purpose: Facilitate other businesses.

    • Comprises about 25% of jobs in the U.S.

      • Subtypes include:

      • Professional Services (e.g., legal, consulting)

      • Financial Services

      • Transportation Services

  3. Public Services

    • Purpose: Provide security and protection for citizens and businesses.

    • Constitutes about 8% of jobs in the U.S.

      • Divided across various government levels (federal, state, local).

Employment Trends

  • Increasing jobs in the tertiary (service) sector, particularly in consumer services.

  • Impact of recession on service sector noted; currently, the fastest growing are in health care.

Central Place Theory (CPT)

  • Concept: Developed by Walter Christaller, describes how consumer services follow a regular pattern based on settlement sizes.

  • Market Area: Refers to the area surrounding a service attracting customers. It is centrally located to maximize accessibility.

  • Range and Threshold:

    • Range: Maximum distance people are willing to travel for a service.

    • Threshold: Minimum number of people needed to support a service.

Hierarchy of Consumer Services

  • Larger settlements provide more services with larger thresholds and ranges, whereas smaller settlements have services with smaller thresholds and ranges.

  • The nesting of services means that larger market areas exist within smaller ones, creating a structured urban environment.

Urbanization and Growth of Services

  • Urbanization leads to the clustering of services, driven by economic and social factors. Megacities and primate cities dominate service distribution.

  • Service sectors vary between developing and developed regions, with Spatial interaction being higher in larger cities due to proximity.

Additional Notes on Business Services

  • Hierarchies among global cities (Alpha++, Alpha, Beta, etc.) determine the distribution of business services, influenced by economic and cultural factors.

  • Offshore financial services gain popularity in developing countries because of lower costs and relaxed regulations.

Conclusion

  • Most jobs in developed countries fall within the service sector, with consumer services closely tied to urbanization patterns and market accessibility.