In recent decades the Andalusian tertiary (service) sector has grown greatly, and has come to constitute the majority of the regional economy, as is typical of contemporary economies in developed nations. In 1975 the service sector produced 51.1 percent of local GDP and employed 40.8 percent of the work force. In 2007, this had risen to 67.9 percent of GDP and 66.42 percent of jobs. This process of “tertiarization” of the economy has followed a somewhat unusual course in Andalusia. This growth occurred somewhat earlier than in most developed economies and occurred independently of the local industrial sector. There were two principal reasons that “tertiarization” followed a different course in Andalusia than elsewhere:
1. Andalusian capital found it impossible to compete in the industrial sector against more developed regions, and was obligated to invest in sectors that were easier to enter.
2. The absence of an industrial sector that could absorb displaced agricultural workers and artisans led to the proliferation of services with rather low productivity. This unequal development compared to other regions led to a hypertrophied and unproductive service sector, which has tended to reinforce underdevelopment, because it has not led to large accumulations of capital.