The service sector has been referred to as the 'Cinderella sector' because it is one of the least understood sectors of the economy. This chapter reviews the pattern of growth and places the Australian experience within the context of broader worldwide trends. Services may range from high-skilled, knowledge-driven activities to low-skilled and low-paid occupations. The diversified nature of the service sector not only creates definitional problems, but it also makes classification for evaluation purposes difficult. The history of service development in the 19th century was one of response to the transformation of colonial agricultural economies into industrial and urban states. The pattern of employment growth, particularly in the latter half of the 20th century, reflected that of other western economies. Finally, the chapter investigates three themes, such as professionalisation, innovation and regulatory influences, all reveal more of the significance of the service sector to the economy.