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Service Industries

Predicted fastest growing industries, 2002–2012 Export and import of goods and services, 1990–2003

Goods Goods Service Service
2012 Year exports imports exports imports
2002 Predicted Percentage
Employment Employment change 1990 $367.2 $469.7 $188.7 $142.7
Industry (in thousands) (in thousands) 2002–2012 1995 $533.9 $697.6 $245.8 $152.1
2000 $784.3 $1,243.5 $311.9 $232.3
Software Publishers 256.0 429.7 67.9% 2003 $721.7 $1,307.3 $309.9 $243.3
Management, scientific, and 731.8 1,137.4 55.4%
technical consulting services SOURCE: 2005 Economic Report of the President.
Community and residential 695.3 1,077.6 55.0%
care facilities for elderly
Table 4
Computer Systems design 1,162.7 1,797.7 54.6%
Employment Services 3,248.8 5,012.3 54.3%
Individual, family, community, 1,269.3 1,866.6 47.1%
and vocational rehabilitation Based on the BLS data shown in Table 2, from 1992
facilities
to 2012 the total level of employment in the United States
Ambulatory health care services 1,443.6 2,113.4 46.4%
was forecasted to increase by approximately 42 million.
Water, sewage, and other systems 48.5 71.0 46.4%
For the same period, the BLS estimated that service indus-
Internet Services 528.8 773.1 46.2%
try employment would increase by 41.8 million. In other
Child Care Services 734.2 1,050.3 43.1%
words, the service sector was forecasted to be responsible
SOURCE: Department of Labor, Bureau of Labor Statistics (BLS).
for 99.6 percent of all employment growth from 1992 to
2012.
Table 3 While the service industry overall is growing substan-
tially, some areas are growing at faster paces than others
because of changes in the economy or the country’s demo-
percent and in 2003 it surpassed 58 percent. If this trend graphics. Table 3 provides a listing of the ten industries
were to continue, by 2010 more than $3 out of every $5 forecasted to have the fastest-growing employment from
of final goods and services produced would stem from the 2002 to 2012.
service industries. The information sector of the service industry is the
fastest-growing sector in the economy. Included within
this sector is the software publishing industry that is antic-
EMPLOYMENT IN SERVICE ipated to be the nation’s fastest-growing employer through
INDUSTRIES
2012. Also within this sector is the quickly growing Inter-
The importance of the service industries can also be seen
net services and data processing industry. The professional
both in the level of employment within the industry and and business services industry is another that is expected
as a percentage of total employment. Total employment to experience substantial gains in employment. Within
and service industry employment for 1992 and 2002 as this industry, the employment services sector is experienc-
well as the levels forecasted by the U.S. Department of ing the greatest expansion as companies seek out ways to
Labor’s Bureau of Labor Statistics (BLS) for 2012 are reduce labor costs and provide greater flexibility in terms
shown in Table 2. of staffing. The gradual but continued aging of the popu-
In 1992 more than 87 million people were employed lation, together with medical advances that have extended
within the service industry and by 2002 this number had life expectancies, have resulted in the health services
risen to nearly 109 million. By 2012 the BLS expected industries also exhibiting large growth in employment.
nearly 130 million persons would be employed in the
service industry. More astonishing than the absolute num- ROLE OF SERVICES IN TRADE
ber of persons employed in the service industry is the large A final point that raises the importance of the service
and growing percentage of total employment emanating industries within the United States can be found when
from the service industry. In 1992 nearly 71 percent of all looking at international trade data. The United States
employment was within the service industry. By 2002 maintains a very large balance of trade deficit due to the
more than 75 percent of employment was within the serv- importation of large amounts of goods relative to the
ice sector. The BLS forecasted that this percentage would amount of exportation of goods, as can be seen in Table 4.
continue to grow, with more than 78 percent of all The balance on services, however, shows a surplus, with
employment within the service industry by 2012. the United States exporting more services than it imports.

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 661