ABSTRACT
This chapter reports on some of these trends. It presents some data on national employment trends followed by forecasts of expected employment change to the end of the century. These data reveal the differing rates of growth of service industries and lead us to focus on one rapidly growing segment—the producer services. The chapter reviews recent research that attempts to explain why the producer services have grown so rapidly. It analyzes changes in the geographical distribution of the producer services and reasons for variations in the rate of growth of these services among regions. The chapter concludes with some policy implications associated with the anticipated strong growth of the producer services. It highlights the importance of the rapidly growing producer services in the American economy. The traded component of the producer services appears to be significant, especially in larger cities, and it appears to be growing over time.
