U.S. Economy Driven by “Services Revolution”

New report shows most of American jobs in services sector, need for international services agreement

WASHINGTON--(BUSINESS WIRE)--The Coalition of Services Industries today released a new report revealing that more than three-quarters of working Americans are employed by the services sector. Across every U.S. congressional district, services provide jobs to more than 60 percent of the workforce.

“An ambitious international services agreement would be one of the greatest economic contributions of this century.”

“Services dominate the American economy,” said Peter Allgeier, president of the Coalition of Services Industries. “We are now in a services revolution, just as we were in the industrial revolution of past centuries.”

Jobs Across America: Services & Employment found that services jobs were at least 3 times greater than those in manufacturing and 6 times greater than agriculture, but in most states considerably higher. Professional, scientific and management services in addition to education and healthcare are the country’s top services employers. Transportation, warehousing, finance, insurance and real estate are also significant employers.

Earlier this week, the Coalition of Services Industries testified about the importance of services to American jobs and growth at the official hearing on the Obama Administration’s intention to begin negotiations to establish a new International Services Agreement. Initiated by the United States, the International Services Agreement includes a total of 47 countries, representing 70 percent of the world’s trade in services.

“A new international services agreement is the most promising opportunity in two decades to improve the ability of the United States to provide services globally,” said Allgeier. “An ambitious international services agreement would be one of the greatest economic contributions of this century.”

The United States is the world’s largest and most competitive services “exporter” with a trade surplus of more than $150 billion in 2012. Trade in services generates quality, high-paying jobs for Americans. On average these pay more than $60,000 annually. Yet only 3 percent of services firms export, largely because of regulatory obstacles. According to a leading trade economist, an estimated 3 million jobs could be created if U.S. services matched the export rate of manufacturers.

The full report, including data on services and employment for all 50 states and every U.S. congressional district, is available at servicescoalition.org/jobs.

The Coalition of Services Industries is the leading association devoted exclusively to promoting the international objectives of the U.S. services sector. We produce tangible, commercially meaningful results by achieving international rules, market access commitments, and regulatory systems that ensure fair competition for all services industries. Our members include companies, industry associations, and professional associations that provide services domestically and globally, including accounting and finance, computer-related services, energy, express delivery and logistics, insurance, media and entertainment, retail and wholesale, technology, and telecommunications, and other services sectors.