Reasons for growth in Tertiary Sector

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  • Created by: Violet99
  • Created on: 12-06-16 11:07

Rise in demand for services linked to disposable i

Disposable income = the amount of money someone has available to spend on non-essential items after essential bills have been met.

On average households are getting richer and their disposable income is steadily increasing (between 1987 and 2006 on average disposable income doubled).

This has led to a rise in the provision of luxury services such as beauty therapies, health clubs and fitness centres. (The number of people with gym memberships is rising by 12% a year)

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Decrease in employment in the primary and secondar

For many reasons already discussed there has been a decline in the number of people employed in primary and secondary industry. If people are not employed in these sectors they must find employment in the tertiary sector.

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The development of new technologies and services

Developments of new technologies especially in computing and telecomunicationshave led to new services being provided eg. sales, call centres and app development. (These products are in high demand and in need of repair or replacemnt regularly)

Online shopping has also aided the increase in employment as more people are needed to service websites, work in cll centres and develop apps. (Numbers of people working in call centres has risen from 350,000 in 2000 to 950000 in 2008)

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Demographic changes

People now mary later and have fewer children meaning they have more time and money to spend on tertiary sector services.

A growing number of people in their 20s spend a high proportion of their income on tertiary industry.

The ageing population also aids the growth as there is an increase in wealthy retired people who have time to spend the 'greying pound' on leisure and tourism (Saga holiday firm has been created for pensioners).

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