economics

THE SERVICES AND INFORMAL SECTORS

Aside from the agricultural and business sectors, there are two more sectors that can be considered as important components of the economy of any country. These are the services sector and the informal sector.

THE SERVICES SECTOR

The services sector consists of those industries that perform the giving of services to consumers as well as to other businesses. This sector does not involve the production of physical goods. For this reason, this sector is also known as tertiary sector of industry.

Since the services sector involves the giving of services such as transport or distribution to other businesses, it can be said that the services sector is a very crucial part of any economy.

No company usually produces its own electricity, and thus most companies are dependent on the power service firms. The government, for its part, does checking and standardization services, so that products will meet the accepted industry standards.

THE SCOPE OF THE SERVICES SECTOR

The services sector consists of many types of businesses, and in today’s information age the services sector is becoming the major component of the economy.

BANKING &

INSURANCE

•This provides financial services and future guarantees to consumers.

TOURISM

•This takes care of the needs of locals and foreigners who are going about certain beautiful places as part of their rest and relaxation.

RETAIL &

WHOLESALE

TRADE

• This involves the distribution of goods and services to more specific clients. The big departments stores (wholesale) as well as the local sari-sari store (retail) may be considered as part of their business.

EDUCATION

•This involves the transmission of knowledge, information, and understanding by teachers to students, as well as the creation of educational materials.

RESTAURANTS

• These includes the high-end restaurants, as well as the popular fastfoods chains, such as McDonald’s and Jollibee. While these provide food as end-products, what they do is just prepare and serve the food, not manufacture it.

ENTERTAINMENT

• This includes the record and music industry, which provides songs and music for everyone’s entertainment; the radio and television industry, which provides real time shows and news, as well as the leisure industry, consisting of games and recreational activity providers, such as theme parks and entertainment centers.

TRANSPORT

•The transport sector provides transport and delivery service for people and goods. This includes the public utility vehicles and container vans and trucks.

HEALTHCARE

• This includes hospitals, clinics, and all other providers of medical and health care. Under these are the doctors, nurses, midwives, chiropractors, and other various health professionals.

CONSULTING

SERVICES

•This is a major group comprising various experts such as lawyers, accountants, investment experts, and writers, who may provide freelance consulting assistance on their particular expertise.

GOVERNMENT

SERVICE

•Government service as a whole, including those provided by public utilities, is considered as part of the services sector. This includes the services rendered by soldiers, policemen, firemen, and other public service personnel.