Why the Services Sector is Essential for the COVID-19 Recovery Effort

The last twelve months have been a rollercoaster year across so many sectors. Nowhere have the effects of the global pandemic been more pronounced than in the services sector. With the second wave of COVID-19, some businesses have been able to utilize technology to find a ‘new normal in an attempt to ease back into work.

The global pandemic has also accelerated pronounced structural changes to traditional industries such as medical and legal where new, innovative business models have accelerated high growth potential. For businesses in the services sector, the move back to work has been less about adaption and more about ‘making-do. The services sector has been subject to tighter scrutiny and regulation than almost any other sector.  

A strong COVID-19 relief policy means that governments must make the services sector a priority in their policy mix. The services sector plays an important role in increasing the efficacy and efficiency of the entire economy and is responsible for more than 50% of jobs globally.

Turning a Corner and Kickstarting the Sector

As so many countries continue to adapt and recover from the ongoing global pandemic, there is light at the end of the tunnel for some. Countries like New Zealand, Australia, Singapore, and many regions in South East Asia have managed to control the virus with strict border and quarantine policies. The strict border policy and quarantine processing mean that the service sector has been able to return to normal trade.

Tradespeople such as electricians, roofers, and plumbers in Newcastle, has been able to resume normal trade. CDL plumbing in Newcastle has been back to normal trading since November 2020 thanks to the strict government border policies across the east coast of Australia. While some of the policies have been criticized for being ‘too strict’ and ‘crippling’ interstate movement, the positive economic impact felt by the trades sector has been a positive boost for the local economy.

Digital Services Are Enhancing the Way Services Are Delivered

Digital services are being adopted and utilized in the trades sector to strategically facilitate a faster return to work. Digital services and digitalization have enabled the creative industries to cope and adapt to the pandemic, with many businesses thriving through digital platforms and technology. While the services sector has not been as fast to adopt as some of the professional services industries, ICT services that enable e-mobility and digital services have facilitated a faster return to work.

Services Need Support

As countries find a way to return to work and deliver services in a way that will be referred to as the ‘new normal, individuals and government organizations must find a way to support this change. Some of the updates that will facilitate a return to work include policy reform, consensus-building, advisory service networks, and technical assistance for services.

As the pandemic continues across Europe, Africa, and North America, the need to refine and improve the service sector has played an increasingly important role in facilitating a return to normal and a way to boost national economies.