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What's driving the business services sector?

The business service sector is seeking avenues for growth in various markets. Having established its indispensability, the sector can now comfortably try out several strategies. Discussed below is what keeps the sector rolling.

Labor Intensive: The sector, which offers intangible products, has immense employment opportunities as it requires both skilled and unskilled labor for its smooth functioning. Business reports indicate that the two most populated countries, China and India, are together expected to create 300 million placements in the global job market by 2030.

The last U.S. jobs report showed that total nonfarm payroll employment increased by 248,000 in September, with the unemployment rate declining to 5.9%. Professional and business services witnessed an increase in employment of 81,000 in September in the U.S. As per The Institute for Supply Management, the U.S. services sector employment hit a nine-year high in September.

We will know more as the October jobs data comes out later this week, but a stronger momentum on the services side will put the labor gains on a sustainably upward trajectory.

Global Reach: Companies can reach their consumers or prospective buyers across the world when Advertising & Market Services and Direct Marketers act on behalf of these in informing consumers about new products or added features in existing products. Thus, these service providers help in widening a company’s customer base and maintaining a better retention ratio. It also opens the door to international trade.

A key development in this regard has been noticed in the banking space. Online banking, for transfer and collection of money from anywhere in the world, mobile money transfer and ATMs are fast gaining traction. The Western Union Company (WU) and MoneyGram International Inc. (MGI) are among the stalwarts, which are continuously working on their new age service offerings via electronic channels to ensure smooth fund transfers. Fund transferors are forming alliances with banks and mobile operators to launch their services.

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