The State of the Service Economy

Service businesses – companies that provide skilled labor or expertise as opposed to more tangible products – represent a massive number of businesses and jobs in the North American labor force and generate billions in revenue each year. In the U.S. alone, service businesses represent 77% of GDP, almost half of which is represented by small and medium-sized businesses (SMBs), and employ 50M people.¹ Businesses in the services sector also face unique challenges today, especially when it comes to shifting consumer expectations around technology and cost.

Despite the importance of businesses providing services, relatively little research has been done to study the current state of the service industry, including how businesses within this sector are faring as the world recovers from a global pandemic and where these merchants may be struggling to fulfill the needs of their businesses. To better understand this group – as well as where the services industry as a whole is trending – we surveyed some of the largest sub-sectors within the broader services industry within the United States and Canada, with a focus on healthcare, home improvement, professional services, financial services, field services, and other personal services.

This report relays the story of today’s constantly shifting and evolving services industry across North America.