Is the Service Industry in the US Under Threat from Outside Forces?

Industry analysts are warning that many existing entry-level service positions might vanish in coming years as a result of market forces that are pressuring the sector from outside. While some people have pointed to major international trade deals as an aggravating factor, it's more likely that many of these forces have more to do with technology and the direction that society is moving in.

Regardless of the exact reasons, however, it's clear that the service sector as a whole is contracting. It's lost jobs for the first time in ten years, and there are some in the field who claim that it's now in permanent decline.

Consumers are becoming more independent in some ways. They're adopting a do-it-yourself attitude that encourages self-sufficiency. Social media outlets are increasingly becoming filled with videos telling viewers the best way to make their own food and clothing.

At the same time, it seems that many people are also becoming more reliant on certain services that are helping the sector tread water. Every piece of restaurant POS software now seems to come loaded with support for delivery services that are also marketing mobile apps.

However, not everyone is so thrilled with the increased pace of automation and there are those who feel it spells doom for the market.

Automation Giving Service Work a Makeover

Economists used to predict that robots would completely replace people in certain fields. Rather than outright replace human service workers, it seems like technology has done much more to the manufacturing sector. Service industry outlets are instead seeing a sort of remaking of work that's driven by automation, but it's effects are primarily felt by relatively low-level human employees.

Ironically, some technicians are now seeing increased wages because they're needed to maintain all of the equipment that powers automated workflows. Some service sector firms have actually found that automation might not save them much money because of just how much maintenance AI-based solutions can require.

Since workers are starting to see fewer hours and lower pay as a result of this kind of influence, it's easy to imagine that an increasingly large percentage of people have begun to work second jobs. In fact, recent numbers would support that idea.

The concept of stolen pay has also become common. People are beginning to feel less satisfaction as they continue to compete against machinery. Some feel that this might begin to impact healthcare markets soon enough, considering that analysts have pointed out that individual habits are starting to change as a result.

In some ways, these are being alerted in a worrying fashion that's increased addictive behaviors in those who already have them.

Addiction in an Increasingly Automated World

Workers have long been stereotyped to come home after a long day and enjoy a couple of cold ones. Historians have actually opined that this image may have helped to encourage lawmakers to repeal prohibition during a period of great economic depression.

However, it's also an image that might be getting sadly quite accurate for many people. A new study claims that service industry workers actually consume alcohol in order to make up for the fact that they find it difficult to fake a positive attitude in their daily lives.

A majority of people who work in these positions earn money primarily through gratuities, which have grown progressively smaller. At the same time, the dollar's buying power continues to shrink, which makes it more difficult for the service sector employees working in restaurants and bars to make a living.

Some level of concern might be also due to the fact that quite a few people feel that their jobs are in jeopardy due to international pressures.

So-called Trade Wars Shape the Economy

Mainstream media outlets have pushed the idea of a trade war with foreign powers for some time. Even if this has more to do with perception than reality, the power of perception to shape the market is very strong. Investors have actually begun to pull out of the service sector, which is reducing the amount of seed capital available to small business owners.

Ironically, some small business owners are actually making due with this situation by leveraging all of the tools they have available to them. Managers have begun to turn to SMS text messaging technology as a way to provide customer service to consumers they weren't otherwise able to reach.

Nevertheless, companies are also finding it more difficult to purchase hardware that's manufactured by other firms that have relied on overseas outsourcing operations for years. That's making it more expensive to buy certain types of products, which means firms are on the lookout for others areas to make cutbacks.

Unfortunately, payroll is one of the places they've elected to slash expenses. This is further increasing the amount of pressure felt by already beleaguered service sector employees.

There are some who feel that the future doesn't look very bright for the industry, but others feel that entrepreneurs might eventually revitalize the sector.

Saving Service Jobs for the Future

News stories about striking employees and slashed wages continue to make headlines. Photographs of displaced workers who've been cut in favor of automated options are now trending on social media. There are some people who feel that better days are on the horizon, though, and telecommuting might have something to do with why they're still so optimistic in spite of all these facts.

Remote workers were hard to find for quite some time. Companies that relied on them usually ended up with individuals who lacked certain functional skills.

As more people move toward working remotely, things are very quickly changing. Service sector businesses have access to an affordable talent pool while potential candidates can keep their options open as they look toward improving their work-life balance.

While it will probably take years for the market to normalize, small business owners and their closest employees may be able to hang onto their existing positions for some time regardless of any outside threats that influence the economy.