Tertiary Sector: Growth, Characteristics, and Regional Disparities
The Rise of the Tertiary Sector
The tertiary sector encompasses activities providing services to society, such as transportation, tourism, and trade. This sector has experienced significant growth since 1960, now contributing over 60% to both GDP and employment.
Factors Driving Growth
Several factors have fueled the expansion of the tertiary sector:
- Increased living standards leading to higher consumption.
- Mechanization of agriculture, releasing labor for other sectors.
- Industrial evolution, particularly the growth of transportation and finance in the 1960s.
- The 1975 crisis, which led to unemployment in the industrial sector and a subsequent rise in service jobs.
- The trend towards outsourcing due to the expansion of ICT and demand for specialized services.
- Development of tertiary activities like tourism, which has boosted hospitality, trade, transport, and leisure.
- Government support for welfare state services, including administration, education, and health.
- Increased female participation in the workforce, driving demand for services like childcare and domestic help.
Characteristics of the Tertiary Sector
Heterogeneity of Services
The tertiary sector is highly diverse, with various classifications possible:
- Ownership and Purpose:
- Private services are provided by private companies for profit, contributing significantly to GDP and employment.
- Public services are provided by the state using tax revenue, aiming to serve society, often with deficits in areas like health and education.
- Types of Services:
- Business services (consultancy, advertising, R&D) are growing.
- Distribution services (transport, communications, mail, commerce), with trade and transport being prominent.
- Social services (health, education, public administration), though privatization is reducing their contribution.
- Consumer services (hotel, catering, leisure, culture), with catering gaining importance.
Other Features in Spain
Service businesses constitute about 80% of all businesses in Spain, with commercial businesses being the most numerous. Approximately 99% are SMEs. The labor sector has grown to over 60% of the working population, as many services are not easily automated. There are significant wage disparities between skilled and unskilled workers. The service sector’s contribution to GDP exceeds 60%. The rising cost of services is driving a trend towards asset substitution, such as opting for prepared food instead of dining out. The incorporation of new technologies is improving service performance.
Territorial Imbalances
While the tertiary sector dominates GDP and employment across all regions, territorial imbalances exist. Location depends on factors like population size, urbanization, development levels, and income, leading to differences in outsourcing and service types.
Regional Variations
- Outsourcing:
Higher outsourcing rates are seen in tourist-heavy regions like Madrid, Ceuta, and Melilla, which have fewer productive activities. The tertiary sector is more dominant in regions with significant agro-industrial activity, such as CLM, Navarra, and Rioja. This sector is concentrated in large cities but is also spreading to other areas.
- Service Provision:
The contribution of services to GDP is greater in areas with advanced business services. More qualified services are concentrated in a few provinces (Madrid, Barcelona, Vizcaya, Zaragoza), typically in large cities. Consumer services are more prevalent in tourist areas like CAV. Lower-skilled services, such as business administrative services, are more evenly distributed.
Future Trends
Future inequalities in the tertiary sector may increase. Although the sector can grow, the numbers are similar to those of neighboring countries. Productive activities and income levels will likely exacerbate current imbalances.