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New report calls for expanded trade, reduced barriers in the global services marketplace

WASHINGTON, DC – 08/17/08 – The US service sector represents the largest portion of the country’s employment and economic output, accounting for 93 million jobs and nearly 80% of US private sector GDP, or approximately $8.5 trillion, according to a new study on the impact of the service industry on the US economy.

Published by the Coalition of Service Industries (CSI), the "Services Drive US Growth and Jobs: The Importance of Services by State and Congressional District," found that the majority of the workforce in virtually every Congressional district is employed in services.

In 398 Congressional districts, 70% or more of the workforce is employed in the service sector, and every state in the nation is an exporter of services.

The US service industry companies operate in a broad range of industry sectors such as express delivery, financial services, financial services, architecture, health care, telecommunications, tourism, engineering, entertainment and audiovisual services, and information technology.

All in, US service exports reached $414 billion in 2006 with a surplus of $73 billion, according to the Bureau of Economic Analysis (BEA) in Washington, DC.

The jobs created by the service sector also are among the best-paying and most highly skilled, the report said.

Service jobs, it said, “paid an average of $51,045 annually in 2005, and in many service industries, including professional services, management services, finance, insurance and others, the average compensation levels are much higher.”

Allowing freer trade in services, the report said, “will accrue even more benefits for the US economy,” alluding to a study prepared by the University of Michigan, which found that the total elimination of barriers to the global trade in services would boost the US economy by more than $450 billion annually.

"If we want the service sector to continue to grow and provide high-paying jobs here in the United States, then it is imperative to enact free trade agreements that open up new markets for US services,” it said.

If we fail to open up new markets for US services, then the US service sector will lose market share, will lose revenue, and ultimately will lose jobs," said Robert Vastine, president of the CSI.

The study's findings were released at a recent event in Washington, DC launching a new Congressional Services Caucus.

The new caucus claims 59 members of the House of Representatives as members including Representatives Joseph Crowley (D-New York), Ruben Hinojosa (D-Texas), Gregory Meeks (D-New York), Kevin Brady (R-Texas), Phil English (R-Pennsylvania), and Deborah Pryce (R-Ohio).

The study was prepared by the Coalition of Service Industries in collaboration with Content First LLC and was sponsored by several CSI members including ACE INA, Discovery Communications, FedEx Express International, IBM, MetLife, New York Life, Principal International Inc., TimeWarner, and UPS.

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