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Why has productivity in the service sector proven difficult?

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User Kojiwell
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Final answer:

Productivity in the service sector has proven difficult due to the shift from manufacturing to service industries, globalization and increased competition, and a reduced desire for unions.

Step-by-step explanation:

The difficulty in achieving productivity in the service sector can be attributed to several factors. One reason is the shift from manufacturing to service industries. This shift has resulted in a change in the nature of work, with service sector jobs often requiring different skill sets and a focus on customer service rather than production.

Globalization and increased competition from foreign producers have also posed challenges to productivity in the service sector. As more services can be outsourced or provided globally, service providers face pressure to stay competitive and meet the demands of a global market.

Additionally, the reduced desire for unions in the service sector, influenced by the availability of workplace protection laws, has affected productivity. While unions have historically played a role in improving working conditions and protecting workers' rights, the service sector has seen a decline in union membership due to various reasons, including legal and cultural factors.

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User Scott Fox
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