SECTOR SPOTLIGHT INFOGRAPHIC

THE TERTIARY SECTOR

BY ALINA HUSSAIN

1
DEFINITION
The tertiary sector, also known as the
service sector, includes all economic
activities that provide services to
individuals and businesses. These
services can include anything from
healthcare or education to financial
services and entertainment Essentially,
the tertiary sector focuses on delivering
expertise, assistance, and experiences
rather than tangible products.

PROPERTIES
2 Key characteristics of this sector
include intangibility (products that
cannot be touched or held), high
labour intensity and customisation.
Key activities encompass IT, personal
care, transportation, healthcare and
education.

MAJOR
3 BUSINESSES
As previously mentioned, this sector
includes businesses such as
hairdressers, banks, cinemas and
personal training. Some companies
that provide such services are
Commerzbank, Sparkasse,
Cinemaxx, Hairstyling Paradiso and
Primetime Fitness.

CONTRIBUTION

4 TO ECONOMY
This sector is a major driver of
economic growth and largely
contributes to the “services”
component of a countries GDP.
Furthermore, as this sector is very
labour-intensive, it leads to numerous
employment opportunities with higher
incomes, thereby increasing the GNI
per capita. Finally, services are traded
internationally which can lead to global
trade and ultimatley, the globalisation
of a country.

CHALLENGES
5 AND TRENDS
Whilst some more recent robotic
technology threatens to displace those
employed in the service sector, labour
shortages do exist where challenges in
finding and retaining skilled labour are
faced. Finally, some of the largest
trends currently existing in this sector
include digital transformation (online
education/banking/e-commerce) and
remote working/telecommuting.