Tertiarization and Service Sector Growth in Spain

The Tertiarization Process of the Spanish Economy

The tertiarization process of the Spanish economy involves the tertiary or service sector, which encompasses a wide variety of activities of all kinds that have in common not producing material goods of any kind. Spain has a service economy, and most of the jobs come from this sector. In Spain, we are experiencing a process of economic tertiarization, which is a recent process; the growth of employment is closely related to the increasing incorporation of women into paid employment.

Causes of the Growth of Services

The rapid growth is the result of the profound changes experienced in Spanish society, which have the following characteristics:

• It is a consumer society in which the rise in income levels has increased purchasing capacity.
• It is a welfare society, which increases the supply of all types of services.
• It is a leisure society, increasing the importance of tourism.
• It is an advanced capitalist society in which the financial sector has a prominent place.
• It is a knowledge society promoting R&D.
• It is a network society that is increasingly more mobile.
• It is a society governed by and requiring public administration.

Contrasts in the Location of Service Areas

Data on employment in service activities shows significant differences when considering the total number of employed persons. If we examine instead the proportion of tertiary employment, the differences decrease. This distribution is due to several factors:

• It relates to the distribution and level of income.
• It is influenced by the development of tourism.
• A third factor is the density of companies.
• And finally, the influence of central, local, and autonomous governments.

Importance and Recent Evolution of Trade

Business trade acts as an intermediary between production and consumption and is of great importance in the economy for a number of reasons:

• It is necessary for the development of a market economy.
• It causes dense flows of goods, capital, and information.
• It generates a large number of jobs.

The recent evolution has led to the reduction of the total number of shops, as many smaller ones disappear. The characteristics of commercial employment are:

• 40% of trade establishments work as small family businesses.
• Also, the presence of women is very high, almost half.
• Almost a third are temporary, while the remaining are fixed.

Kinds of Activities Between Producers and Consumers

Distribution channels are created for all kinds of goods. We can distinguish between two types of trade:

• Wholesalers: They purchase from producers in large quantities.
• Retailers: They buy from wholesalers and sell in detail, in small quantities.

Recent Changes in Retail Activity

Although it has a long tradition, there are major changes in its organization:

• There is a concentration of companies; the reduction of the number of small shops is to assist large commercial companies.
• Simplifying some distribution channels to act as both wholesalers and retailers.
• The spread of the use of new information technologies.

Retail Areas and Specialization

Retail varies according to location, financial capacity, and product specialization. There are food shops and specialized establishments.