The ability of an organisation to generate a good or a service is measured by its productivity. The total number of finished items can be used as proof by businesses that create things, but it is notoriously difficult to assess the productivity of the service industry.
5 Important Reasons for low productivity in service industries
1. Usually time-consuming (counseling, teaching)
2. typically concentrated on distinctive personal qualities or desires ( investment advice)
3. frequently an intellectual task carried out by experts (medical diagnosis)
4. Frequently challenging to automate and mechanise (a haircut)
5. evaluating quality is frequently challenging (performance of a law firm)
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In Fiscal Year 2021, federal spending was equal to 30% of the total gross domestic product (GDP), or economic activity, of the United States that year ($22.39 trillion).
