The Rise of the Tertiary Sector in Spain: Economic Impact and Regional Disparities
The outsourcing of the Spanish economy is the process by which the tertiary sector (transport, communications, tourism, commerce, banking, etc.) is gaining weight compared to other sectors (primary and secondary). This is becoming the primary sector, both in terms of the active population employed and its contribution to GDP.
Causes of Growth in the Tertiary Sector
- Increasing living standards: Higher family incomes, etc.
- Industry growth: Momentum favored growth in 1960.
- Increase in tourism: Contributing to trade, banking, and entertainment.
- Increase in public services: Driven by self-government and European incentives, stimulating growth in services such as health and education.
- Increasing involvement of women in the workforce: Favors the creation of childcare centers.
Heterogeneity and Regional Inequality
The service sector is very heterogeneous and lends itself to various forms of classification:
- Public and private services
- Services destined for sale (provided on a commercial basis) and services not intended for sale (free services like education)
- Intermediate services (destined for other economic activities)
- Stuck services (cannot reduce the workforce without impacting quantity produced) or progressive services (may include technical advances)
In Spain, the tertiary industry structure shows some shortcomings. Subsectors are dominated by more traditional and less productive activities, while business services have little weight:
- Commercial services: Prominent in employment.
- Public administration services to businesses.
- Hospitality.
- Transport and communications.
- Private health.
Across all autonomous communities, the tertiary sector is not homogenous; there are significant regional imbalances. The service sector’s ubiquity means its location is influenced by factors such as population volume, degree of urbanization, and level of economic development. These factors motivate big differences:
- Largest outsourcing: Employment is higher in areas dependent on tourism (Canary Islands, Balearic Islands, Andalusia), while outsourcing is lower in areas with heavier agricultural and agri-food industries (La Rioja, Galicia, Castilla-La Mancha).
- Unequal weight of different branches: Differences in autonomous communities explain variations in service provision. GDP is greater where more advanced services predominate and where the demographic volume is high. For example: business services, services related to consumption, and low-skilled services.
Future Trends
In the future, these inequalities may increase. Although there is still scope for quantitative growth in the sector, the numbers are now similar to those of other countries. Therefore, the increase is aimed at qualitative improvement and diversification of services. This will be increasingly conditioned by the unequal distribution of productive activities and income, thus risking an accentuation of current imbalances.
Across all autonomous communities, the tertiary sector is not homogenous; there are significant regional imbalances. The service sector’s ubiquity means its location is influenced by factors such as population volume, degree of urbanization, and level of economic development. These factors motivate large differences:
- Largest outsourcing: Employment is higher in areas dependent on tourism (Canary and Balearic Islands, Andalusia), while outsourcing is lower in areas with heavier agricultural and agri-food industries (La Rioja, Galicia, Castilla-La Mancha).
- Unequal weight of different branches: Differences in autonomous communities explain variations in service provision. GDP is greater where more advanced services predominate and where the demographic volume is high. For example: business services, services related to consumption, and low-skilled services.
In the future, these inequalities may increase. Although there is still scope for quantitative growth in the sector, the numbers are now similar to those of other countries. Therefore, the increase is aimed at qualitative improvement and diversification of services. This will be increasingly conditioned by the unequal distribution of productive activities and income, thus risking an accentuation of current imbalances.