ABSTRACT

The degree and nature of service industry growth varied tremendously, depending on regional population growth and the size and economic function of metropolitan areas within the US metropolitan system. One pivotal issue in addressing the quality of employment and earnings opportunities generated by service industries is how researchers define and measure labor market hardship at the lower tiers of the labor market. This chapter focuses on service industries and labor market hardship in the largest one hundred metropolitan areas. It defines different types of service industries and their basic employment and earnings characteristics. The chapter defines a Poverty-level Earnings (PLE) index as a measure of labor market hardship and compares it to more conventional concepts of unemployment and poverty. It summarizes its distribution across service industries and metropolitan areas. The chapter presents authors’ findings on the impact of service growth on labor market hardship, with special attention to women and minorities.