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SERVICE INDUSTRIES
AND ECONOMIC PERFORMANCE
U.S. Department of Commerce
Economics and Statistics Administration
Office of Policy Development
March 1996
Service Industries
PREFACE
ESA’s analytic mission is to explain changes in the structure of U.S. industries and firms
that affect the nation’s overall economic performance. The present study examines the
character and causes of the economy’s increasing service orientation and considers
implications of the shift to services for U.S. economic growth, employment, and
competitiveness. The study was prepared by Gerald Moody, Sandra Cooke, Kan Young,
and David Henry with the guidance and participation of Warren Farb and Gurmukh Gill.
Jeffrey Mayer edited the final report.
Everett M. Ehrlich
Under Secretary
for Economic Affairs
Service Industries
Service Industries
SUMMARY
Service Industries and Economic Performance addresses three questions that have
troubled economists for more than a decade: whether service-oriented economies can
sustain high rates of output growth; whether they can generate large numbers of good
jobs; and whether they can compete effectively in global markets.
Compared with a generation ago, U.S. service industries now account for a larger share of
real output, and a much larger share of employment. Service inputs also comprise more of
the embodied value of all the goods and services Americans produce for final use.
Powerful forces now at work in the United States and elsewhere give these changes
overwhelming
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