Employment in services (% of total employment) (modeled ILO estimate)



Countries By Employment in services (% of total employment) (modeled ILO estimate)



Key points



Official Definition of Employment in services (% of total employment) (modeled ILO estimate)

Employment is defined as persons of working age who were engaged in any activity to produce goods or provide services for pay or profit, whether at work during the reference period or not at work due to temporary absence from a job, or to working-time arrangement. The services sector consists of wholesale and retail trade and restaurants and hotels; transport, storage, and communications; financing, insurance, real estate, and business services; and community, social, and personal services, in accordance with divisions 6-9 (ISIC 2) or categories G-Q (ISIC 3) or categories G-U (ISIC 4).



Importance

Employment in services (% of total employment) is a crucial macroeconomic indicator for a country as it reflects the dependency of the workforce on the services sector.

A low value of this statistic indicates a high reliance on other sectors such as agriculture or manufacturing. This could suggest a less diversified economy, potentially making the country vulnerable to fluctuations in those specific sectors. It may also imply limited job opportunities in the services industry, which could hinder economic growth and innovation.

On the other hand, a high value of Employment in services (% of total employment) signifies a strong and diverse services sector. This can indicate a more resilient economy, as services are often less susceptible to external shocks compared to other sectors. A robust services sector can also lead to higher income levels, increased productivity, and overall economic development for the country.



Top 10 Countries by Employment in services (% of total employment) (modeled ILO estimate)

Bottom 10 Countries by Employment in services (% of total employment) (modeled ILO estimate)



Regions

Europe

Employment in services represents a significant portion of total employment for the listed countries, with Luxembourg having the highest percentage at 88.86% and Moldova the lowest at 30.85%. Countries like Belgium, Iceland, and the United Kingdom also have high percentages above 75%, indicating a strong presence of service sector jobs. High levels of service sector employment can signal a diversified economy and potential for innovation, as seen in countries like Sweden and Switzerland. However, overreliance on the services sector, as in Greece and Romania, may lead to vulnerability during economic downturns. This statistic's implications are vast, influencing economic stability, technological advancement, and social welfare policies in each country.

Far East: East Asia, SE Asia, Australia

Employment in services (% of total employment) is a crucial indicator of a country's economic structure. Singapore stands out with the highest value at 85.04%, reflecting a highly developed services sector. Australia and Japan also show strong service sector employment at 78.04% and 72.80% respectively. These countries likely benefit from higher value-added services and diversified economies. Conversely, Laos and Cambodia have lower percentages at 25.58% and 37.95%, indicating a more agriculture-focused economy with limited service sector development. While a high service sector percentage indicates economic diversification and competitiveness, it also poses challenges such as vulnerability to global economic fluctuations. Overall, this statistic reflects each country's economic development stage and potential for sustainable growth.

ASEAN

Brunei has the highest percentage of employment in services among the listed countries, indicating a strong focus on the service sector. Singapore follows closely behind with a high percentage as well, reflecting their developed service economy. Malaysia and the Philippines also show notable levels of service sector employment, suggesting economic diversity. On the other hand, Laos and Myanmar have significantly lower percentages, possibly indicating less developed service sectors. This statistic implies that countries with higher service sector employment may have more diverse economies and potentially higher levels of income and urbanization, while those with lower percentages may need to focus on developing their service industries for broader economic growth.

Latin America

The data on employment in services (% of total employment) for the selected countries shows a range of values, with Uruguay having the highest percentage at 73.77% and Guatemala the lowest at 49.22%. Argentina, Brazil, Chile, and Venezuela fall within the range of 70-72%, indicating a significant reliance on the services sector for employment in these countries. This statistic reflects the varying levels of economic diversification and development among the countries, with advantages such as potential for innovation and growth in the services sector but also disadvantages like vulnerability to economic shocks in global service industries. Higher percentages suggest a more developed services sector, which can impact a country's overall economic stability and growth trajectory.

Middle East

The data on Employment in services (% of total employment) for the selected countries shows a wide variation in the reliance on the services sector for employment. Countries like Israel, Cyprus, and Jordan have a high percentage of employment in services, indicating a strong service-based economy and potential for economic diversification. On the other hand, countries like Armenia, Morocco, and Georgia have lower percentages, suggesting a more significant reliance on other sectors. While high service sector employment can indicate economic resilience and innovation, it may also lead to income inequality and vulnerability to external market fluctuations. For countries with lower service sector employment, there may be opportunities for growth and development in this sector, but a heavy focus on services could potentially neglect other vital industries crucial for overall economic stability.



Rivals

Anglosphere v BRICS

Australia, Canada, the United Kingdom, and the United States have the highest percentages of employment in the services sector, indicating advanced economies with strong service industries. India and China, on the other hand, have lower percentages, reflecting a larger portion of the labor force in agriculture and industry. Brazil, New Zealand, the Russian Federation, and South Africa fall in between. While a high services sector can signify economic diversification and higher wages, it may also lead to income inequality and vulnerability to global market fluctuations. For countries like India and China, a lower percentage implies a need for further industrialization for economic growth, despite potential challenges in job quality and stability.

Russia v Ukraine

In the Russian Federation, the employment in services sector stands at 67.50% of total employment, indicating a significant reliance on the services industry for job opportunities. Conversely, Ukraine has a slightly lower percentage at 60.87%, showcasing a similar yet marginally less service-oriented labor market compared to Russia. The advantage for Russia lies in the diversification and growth potential of the services sector, while Ukraine may benefit from a more balanced employment distribution across industries. However, over-reliance on services can make Russia vulnerable to sector-specific economic downturns, whereas Ukraine's lower percentage may suggest room for development in the services industry. This statistic underscores the need for both countries to ensure the resilience and sustainability of their respective service sectors for long-term economic stability and growth.

France v United Kingdom

In France, 77.69% of total employment is in the services sector, while in the United Kingdom, this figure rises to 80.79%. The United Kingdom has a slightly higher reliance on the services sector for employment compared to France. This shows that both countries have economies that are heavily oriented towards services, which can indicate a higher level of economic diversification. However, the potential disadvantage of such high dependence on services is vulnerability to global economic fluctuations. For both countries, a strong services sector can lead to increased economic stability and growth, but also raises concerns about over-reliance on a single sector for employment. This statistic highlights the importance of maintaining a balance between different economic activities for sustainable development in both France and the United Kingdom.

Israel v Iran

Iran and Israel have differing employment structures in the services sector, with Iran having 49.70% and Israel having 83.29% of total employment in this sector. Israel's higher percentage indicates a more developed services sector compared to Iran, suggesting a more diversified and advanced economy. For Israel, this can mean higher levels of innovation, expertise, and potentially higher wages in the services industry, leading to economic growth. However, this can also make Israel more vulnerable to global economic fluctuations. In contrast, Iran's lower percentage may indicate a less mature services sector, potentially limiting economic growth opportunities but also providing room for expansion and development in this area.

Saudi Arabia v Iran

Iran has 49.70% of its total employment in the services sector, while in Saudi Arabia this figure is significantly higher at 73.93%. This indicates that Saudi Arabia has a larger proportion of its workforce engaged in services compared to Iran. The advantage for Saudi Arabia lies in its diversified and growing services sector, potentially offering more job opportunities and contributing to economic growth. However, this heavy reliance on services could pose a vulnerability in times of economic shocks. For Iran, a lower percentage in services may suggest a more balanced economy with a mix of sectors. This statistic reflects each country's economic structure and their developmental paths, highlighting the need for Saudi Arabia to ensure resilience in its services sector and for Iran to potentially enhance its service industry for further growth.

India v Pakistan

India has a lower percentage of employment in services at 31.62% compared to Pakistan's 37.23%. This indicates that Pakistan has a relatively larger workforce engaged in service-related activities. For India, a lower dependence on the services sector may suggest a more diversified economy, potentially reducing vulnerability to fluctuations in services demand. However, Pakistan's higher reliance on services can signify a more significant contribution to GDP from this sector, portraying potential economic growth opportunities. Despite this, overreliance on services can pose challenges like job instability and limited growth in other sectors, impacting overall economic resilience. Ultimately, both countries need to balance their service sector employment to support sustainable development.

Turkey v Greece

In Greece, 74.69% of total employment is in the services sector, indicating a strong reliance on service-related industries. In contrast, Turkey has 56.21% of total employment in services, suggesting a comparatively lower emphasis on this sector. Greece benefits from a diverse services industry, offering job opportunities and contributing to economic growth; however, overreliance on services may lead to vulnerability during economic downturns. Turkey's lower percentage may imply a more balanced employment distribution but could also indicate potential underdevelopment in services. Developing the services sector further could boost both countries' economic diversification and resilience.

China v Japan

In terms of Employment in services (% of total employment), China, People's Republic of has a value of 44.81%, while Japan has a significantly higher percentage at 72.80%. This indicates that Japan relies more heavily on the services sector for employment compared to China. For China, a lower percentage suggests a larger portion of the workforce is engaged in other sectors. Advantages for Japan include a more diverse and specialized services sector, potentially leading to higher incomes. However, this heavy reliance could also make Japan more vulnerable to fluctuations in the services industry. Conversely, China's more diversified workforce may provide stability but could signify underdevelopment in the services sector. This statistic impacts both countries' development by influencing economic diversification, income levels, and resilience to sector-specific shocks.



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