Spatial fixes and the rise of the service sector: changes in the global division of labour

As I focus on processes of class formation outside manufacturing, it makes sense to examine how the division of labour across sectors has been developing around the globe. I want to assess whether my focus on service and public sector work is justified – and whether my research heuristic captures relevant developments. The ILO is collecting and aggregating data on the size of three sectors of the global economy – agriculture, industry and services – which can be used for this purpose. The figures refer to the number of people employed or self- employed in each sector.

Undoubtedly, there are questions worth asking about the validity of the ILO data. The categories used are based on the empiricist assumption that the sectoral location of any worker can be read off from the ‘main activity’ of the business unit where they work. Following the logic of the ILO, the high- level asset manager working for a hedge fund, the independent business lawyer advising her for hefty fees and the janitor cleaning both of their offices and earning the minimum wage are all working in the service sector. And a similar point can be made about reliability. Data are gathered from all corners of the world and from a great number of sources. Nevertheless, I contend that the ILO figures still have a use value if one is clear about the fact that they provide a very rough sketch and not a fine- grained picture.

The data are available in the form of absolute and relative numbers. Since it is likely that the global workforce develops in tandem with the global population, the absolute figures say little if they are not related to population growth. According to UN estimates, there were 5.49 billion people on the planet in 1992, and this number has increased to 7.84 billion in 2020. This amounts to an increase of 42.8 per cent.

It can be gleaned, first, from the numbers that there is a strong increase in services. In absolute terms, they have increased from 803 million people in 1992 to 1.622 billion in 2019. This is a rise of 102 per cent, which is exceeding the global population increase by far.