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.