Why are service sector activities becoming important?

The tertiary sector is the service sector of the economy. It is extremely important in developed countries. For example, health, trade, transport etc. It brings more than 60% of GDP while employing less than 27% of the workforce. Although there is a significant increase in the GDP, enough jobs are not provided. This is termed as 'Jobless growth'. The main reasons behind the growth of this sector are :

1. With the increase in population, the number of hospitals, schools, banks, tourism facility demands has also increased.

2. With the increase in the number of working women, the demand for certain facilities like cook, housekeeper, daycare has increased.

3. The development of agriculture and industries have increased the demand for transportation, warehouse, retail etc