Service Sector: Impact on Society and Economy in Spain
Service Sector: Impact on Society and Economy
Heterogeneity and Territorial Distribution of Services
1.1 The Tertiary or Service Sector
The tertiary or service sector comprises a set of features designed to meet the needs and demands of society.
Features:
- Intangible and immaterial activities: Valued benefits, such as medical or consulting services.
- Impossible to store: Services are consumed when needed or required.
- Diverse: Public administration, financial services, commercial, cultural and leisure, health, education, cleaning, social assistance, communication, etc.
- Quaternary or higher tertiary activities: The most qualified research.
- Involves both large companies and small entrepreneurs.
Classification:
- Final consumption: Aimed at consumers (e.g., catering, social services).
- Production and distribution: Targeted at businesses and professionals (e.g., financial, real estate).
- Public: Managed by public administrations.
- Stuck: Low capacity to increase productivity; cannot avoid manual labor (e.g., social services).
- Progressive: Allows savings in production factors (e.g., communications).
1.2 Growth in Demand for Services
After the crisis of 1973, there was a significant increase in the demand for services. Factors contributing to this growth include:
- Increased family income.
- Inclusion of women in the workforce.
- Changes in land use.
- Increased free time.
- Increased life expectancy.
Companies began outsourcing services to improve performance, including auditing and human resources. Strategic activities are now included in services. The enhancement of public and basic social services targeted to the population is a result of the welfare state. Services, as well as the number of staff, have increased due to Spain’s incorporation into the EU and other supranational organizations.
1.3 Indicators for Studying the Service Sector
- The percentage contributed by the service sector to the GDP (to understand the wealth the tertiary sector brings to a country’s economy).
- The percentage of employees in the service sector.
1.4 Distribution of Services in Spanish Territory
Services are located where there is demand, such as in cities, industrial areas, and busy tourist areas.
Tertiary Sector Distribution: Catalonia, Madrid, Andalusia, and Valencia have the highest concentration. Distribution depends on the volume of economic development and its demographic and tourist appeal. Regions with less tertiary activity are predominantly agrarian and agribusiness-focused or have a lower percentage of services.
Subsectors: Social services are significant and distributed equitably (administrative, health, or education). Communications, finance, and business services are distributed by income level and concentration of population, businesses, and institutions (Madrid and Barcelona). The greatest concentration of commercial enterprises is found in Catalonia, Andalusia, Madrid, and Valencia (half of the total business enterprises in Spain).
Outsourcing of the Welfare Society and the Economy
2.1 Services in the Welfare Society
A series of services are considered rights by citizens.
Public Administration: A fundamental branch of the public sector, divided into State Administration, Regional Administration, and Local Administration. The high number of officials has led to increased bureaucracy and significant public expenditure. There is a need for profound restructuring of functionality, improved organization and management systems, and appropriate preparation and motivation of staff. Currently, there are few increases and an increasing privatization process of some services.
Education:
- Compulsory education: More equal opportunities, with a 100% schooling rate.
- Post-compulsory education: Growth in both high school and university levels.
- Quality of education: A very high index of school failure. Scientific and technical careers do not provide the number of professionals that companies demand. The science sector increasingly requires training appropriate to a world in constant change and a high capacity for innovation.
- Public expenditure on education: Although it has increased, it is still below that of Scandinavian EU countries. Private education now has a significant weight (3rd highest in Europe), much of it subsidized.
Healthcare:
Consolidation of universal healthcare assistance. According to the law, all citizens are entitled to public healthcare, representing great social progress. It represents significant and increasing public spending due to innovations and the creation of new clinics. Spain is important for organ transplants, but there is a shortage of medical personnel, leading to long patient wait times. This has created a private healthcare sector.
Service Sector in the United States
4.1 Tertiary Activities in Catalonia
Catalonia is among the European regions with a higher degree of industrial activity. The distribution of jobs in the service sector is uneven, concentrated mainly in administrative centers in densely populated and tourist areas (Barcelona, coastal and tourist cities in the Pyrenees). Services and industry are the sectors that have experienced the most unemployment during the crisis (catering, trade, and business services).
4.2 Social Services
Healthcare: The healthcare model is considered one of the best in the state. Healthcare expenditure has increased substantially due to the need for research, improved facilities, personnel, and funding centers. Other reasons include increased disease prevention, incorporation of technology, and communication. Catalonia is a power in biomedical research with the creation and funding of research institutes (a reference in oncology, cancer treatment, and organ transplantation).
Education: Until 2000, there was a decline in the birth rate, leading to fewer primary schools. Currently, immigration, higher birth rates, and population mobility have increased the demand for primary school places and, consequently, the number of professors.
4.3 Tourism in Catalonia
Catalonia is a major tourist destination in the state and one of the most important in Europe due to its geographical position, climate, landscape, and accessibility. The tourism sector has a strong weight in the Catalan economy (12% of GDP) and provides many jobs. It boasts a variety of natural, cultural, and historical wealth, although it is mainly based on three types: sun and beach tourism, city tourism, and cultural tourism. Tourism related to nature, mountains, snow, and adventure sports has increased in recent years but still has relatively low demand. In 2008, there were nearly 15 million tourists.